Home improvement retail giant Home Depot (NYSE: HD) will be announcing earnings results this Tuesday before the bell. Here’s what to expect.
Home Depot beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $39.86 billion, up 9.4% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and gross margin in line with analysts’ estimates.
Is Home Depot a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Home Depot’s revenue to grow 4.9% year on year to $45.27 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $4.69 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Home Depot has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Home Depot’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 7.1%, meeting analysts’ expectations, and Arhaus reported revenues up 15.7%, topping estimates by 7.4%. Floor And Decor traded up 2.2% following the results while Arhaus was also up 13.5%.
Read our full analysis of Floor And Decor’s results here and Arhaus’s results here.
There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 5.8% on average over the last month. Home Depot is up 9.5% during the same time and is heading into earnings with an average analyst price target of $423.91 (compared to the current share price of $398.50).
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