Categories Earnings, Retail

Earnings Preview: Home Depot revenue might see a recovery in Q2

The Home Depot Inc. (HD) is scheduled to report second-quarter 2018 earnings results on August 14. For the first quarter, while the company’s profits saw an increase, beating market expectations, sales missed estimates despite posting a year-over-year growth. Home Depot said Q1 revenues were impacted negatively by cold weather, but the company anticipates a recovery in the top line for the second quarter.

For the full year of 2018, Home Depot expects revenues to increase by around 6.7% and comparable sales to grow by about 5%. Diluted EPS is expected to see an improvement of approximately 28%. For Q2 2018, analysts expect EPS to come in between $2.84 to $2.88 while revenues are expected to increase by more than 6%.

Home Depot is likely to benefit from positive trends in the housing market

Home Depot saw growth in same-store sales last quarter while commodity prices and forex drove strength in average ticket. The company believes it can benefit from the positive trends in the housing market. Additionally, the cost of home renovations is lower than the cost of new home builds. This factor too is likely to prove beneficial for Home Depot and its peers.

Home Depot’s shares fell over 2% after its first-quarter results, but the stock is up more than 3% so far this year.

Along with Home Depot, other retailers such as Macy’s Inc. (M) and Walmart Inc. (WMT) are due to report earnings this week.

Related: Home Depot stock drops as revenue miss estimates

Home Depot first quarter 2018 earnings

Most Popular

Target Corp posts strong results in Q3: Infographic

Target Corporation (NYSE: TGT) reported fourth-quarter 2020 financial results before the opening bell today. The department store chain reported Q4 revenue of $28.3 billion, up 21% year-over-year and higher than

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top