logo
  Join        Login             Stock Quote

Home Depot's Q1 Earnings May Rise 30%

 May 11, 2012 12:08 PM
 


(By Mani) Home Depot, Inc. (NYSE:HD) is expected to report a strong growth in earnings and revenue when it reports its first-quarter results on May 15.

Results of Home Depot, a Dow component, are considered by investors as a measure to gauge the ups/downs of the global economy due its significant international reach and the ongoing trends in the housing market.

Wall Street expects the world's largest home improvement retailer to report earnings of 65 cents a share, according to analysts polled by Thomson Reuters. The consensus earnings estimate implies an increase of 30 percent from the same period last year when the company earned 50 cents a share.

[Related -The Home Depot, Inc. (NYSE:HD): More Room For Improvement]

For the past four quarters, Home Depot's earnings have managed to top Street view, with the fourth quarter of fiscal 2011 earnings topping estimates by a wide margin of 19 percent. Analysts have also become increasingly bullish on the company's earnings potential as their consensus estimates have increased from 60 cents over the last three months to the current 65 cents a share.

Quarterly revenues are expected to grow 6.40 percent to $17.9 billion. This could be the strongest sales growth for the company in recent times. In the preceding four quarters, Home Depot sales grew 5.9 percent, 4.4 percent, 4.2 percent and 0.2 percent.

Home Depot, led by CEO Francis Blake, could benefit from its new warehousing and transportation system, which might have a favorable impact on its supply chain, thereby saving costs. On the other hand, investors would be skeptical whether a modest pickup in US economy is enough to boost sales at home improvement retailers.

[Related -A Pause In The Action]

As a result, investors will give more importance to Home Depot's guidance for the full year. Analysts expect the company to earn $2.91 a share on revenue of $74.09 billion for the full year.

In the fourth quarter of fiscal 2012, the company's net earnings rose 31.9 percent to $774 million, or 50 cents per share, from $587 million or 36 cents per share a year-ago. Net sales for the quarter grew 5.9 percent to $16.01 billion on 5.7 percent growth in comparable store sales. Analysts had expected earnings of 42 cents a share on revenue of $15.5 billion.

Analysts, generally, seem to have a positive opinion on Home Depot stock as 20 out of 30 analysts covering the stock rate it as "strong buy" or "buy," while the remaining 10 analysts recommend investors to "hold" the stock. There are no "sell" ratings on the stock.

Shares of Atlanta, Georgia-based Home Depot have gained 36 percent in the last one year and 12 percent in the last 3 months.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.