What to Expect When Home Depot Reports Tuesday

By Chris Lange Updated Jan 11, 7:28PM EST · Published Aug 13, 11:40AM EDT

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What to Expect When Home Depot Reports Tuesday — © Romanista / iStock

Home Depot Inc. (NYSE: HD) is scheduled to report its most recent quarterly results on Tuesday before the markets open. The consensus estimates call for $2.84 in earnings per share (EPS) and $30.01 billion in revenue for the fiscal second quarter. The same period of last year reportedly had EPS of $2.25 and $28.11 billion in revenue.

In the first-quarter report, revenues were a bit shy of estimates but the real downer for Home Depot was same-store sales. Analysts were looking for total same-store sales to rise by 5.6%, and that target was not in sight as the company reported same-store sales of 4.2%. U.S. same-store sales missed by even more, 3.9% versus an estimate for growth of 5.5%.

At that time, Home Depot issued full-year guidance expecting fiscal year 2018 sales to rise by 6.7% and same-store sales to rise by about 5%. EPS growth was tabbed at 28%, and EPS was forecast at $9.31.

CEO Craig Menear commented in the previous report:

Outside of our seasonal business, we had solid results in all markets and categories and are seeing strong momentum in all lines of business during these first few weeks of May. These trends, as well as a favorable housing and macroeconomic backdrop, give us confidence to reaffirm our sales and earnings guidance for fiscal 2018.

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Over the past 52 weeks, Home Depot has outperformed the broad markets, with its stock up about 27%. However, in just 2018 alone, the stock is only up over 3%.

A few analysts weighed in on Home Depot ahead of the report:

Citigroup has a Positive rating with a $220 price target.
Loop Capital has a Hold rating with a $200 price target.
UBS Group has a Buy rating with a $225 target price.
Deutsche Bank has a Buy rating and a $210 price target.

Shares of Home Depot were last seen trading at $196.08, with a consensus analyst price target of $212.55 and a 52-week range of $146.89 to $207.61.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.