Home improvement retail giant Home Depot (NYSE: HD) will be reporting results this Tuesday before the bell. Here’s what to look for.
Home Depot met analysts’ revenue expectations last quarter, reporting revenues of $41.77 billion, up 4.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ gross margin estimates.
Is Home Depot a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Home Depot’s revenue to grow 4.4% year on year, in line with the 4.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Home Depot has a history of exceeding Wall Street’s expectations.
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 3%, beating analysts’ expectations by 1.6%, and Arhaus reported revenues up 7.4%, topping estimates by 4.9%. Floor And Decor traded up 4.1% following the results while Arhaus was also up 16.6%.
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 3.3% on average over the last month. Home Depot is up 1.7% during the same time and is heading into earnings with an average analyst price target of $374.06 (compared to the current share price of $338.70).
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