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Here's What to Expect from Home Depot's (HD) Q3 Earnings
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Shares of Home Depot (HD - Free Report) sunk 3.5% ahead of its quarterly earnings release Tuesday as part of a larger downturn that saw the likes of Apple (AAPL - Free Report) , Boeing (BA - Free Report) , Microsoft (MSFT - Free Report) , and other giants fall. HD shares had also fallen 7% over the last three months before Monday’s dip. So, the question is what should investors expect from Home Depot’s Q3 financial result?
Overview
Home Depot is the world's largest home improvement retailer and boasts 2,286 locations. The firm pulled in $100.9 billion in revenues last year, which marked a 6.7% jump from fiscal 2016.
Home Depot stock has also blown away the S&P 500 over the last five years, up roughly 130% compared the S&P’s 60% climb. Shares of HD have also crushed rival Lowe’s (LOW - Free Report) 86% jump.
With that said, we can see that shares of Home Depot have experienced some turbulence over the last year. Home Depot stock closed regular trading at $179.43 per share Monday, down 16% from its 52-week high of $215.43 per share.
Q3
Home Depot’s third-quarter revenues are projected to jump by 4.8% to reach $26.23 billion, based our current Zacks Consensus Estimate. Meanwhile, the retail giant’s comparable store sales are expected to climb 4.7%, based on our current NFM estimates. Investors should note that comps jumped 5.3% last quarter.
At the other end of the income statement, Home Depot’s adjusted quarterly earnings are projected to pop 23.4% to land at $2.27 per share. This would be solid growth for a company of Home Depot’s size and age, but we still need to know how likely it is that the company tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to do so. The Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Home Depot is currently as a Zacks Rank #3 (Hold) that sports an Earnings ESP of -1.94%. Unfortunately, this means that our model is inconclusive. But we should note that Home Depot has topped our quarterly earnings estimates for over five years in a row.
Home Depot is scheduled to release its Q3 financial results before the opening bell on Tuesday, November 13.
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Here's What to Expect from Home Depot's (HD) Q3 Earnings
Shares of Home Depot (HD - Free Report) sunk 3.5% ahead of its quarterly earnings release Tuesday as part of a larger downturn that saw the likes of Apple (AAPL - Free Report) , Boeing (BA - Free Report) , Microsoft (MSFT - Free Report) , and other giants fall. HD shares had also fallen 7% over the last three months before Monday’s dip. So, the question is what should investors expect from Home Depot’s Q3 financial result?
Overview
Home Depot is the world's largest home improvement retailer and boasts 2,286 locations. The firm pulled in $100.9 billion in revenues last year, which marked a 6.7% jump from fiscal 2016.
Home Depot stock has also blown away the S&P 500 over the last five years, up roughly 130% compared the S&P’s 60% climb. Shares of HD have also crushed rival Lowe’s (LOW - Free Report) 86% jump.
With that said, we can see that shares of Home Depot have experienced some turbulence over the last year. Home Depot stock closed regular trading at $179.43 per share Monday, down 16% from its 52-week high of $215.43 per share.
Q3
Home Depot’s third-quarter revenues are projected to jump by 4.8% to reach $26.23 billion, based our current Zacks Consensus Estimate. Meanwhile, the retail giant’s comparable store sales are expected to climb 4.7%, based on our current NFM estimates. Investors should note that comps jumped 5.3% last quarter.
At the other end of the income statement, Home Depot’s adjusted quarterly earnings are projected to pop 23.4% to land at $2.27 per share. This would be solid growth for a company of Home Depot’s size and age, but we still need to know how likely it is that the company tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to do so. The Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Home Depot is currently as a Zacks Rank #3 (Hold) that sports an Earnings ESP of -1.94%. Unfortunately, this means that our model is inconclusive. But we should note that Home Depot has topped our quarterly earnings estimates for over five years in a row.
Home Depot is scheduled to release its Q3 financial results before the opening bell on Tuesday, November 13.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>