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Home Depot’s Q1 Earnings to Rise 10%, Revenue to Jump 7%

By:
Vivek Kumar
Published: Aug 13, 2021, 08:01 UTC

Home Depot Inc, the largest home improvement retailer in the United States, is expected to report its second-quarter earnings of $4.42 per share, which represents year-over-year growth of about 10% from $4.02 per share seen in the same period a year ago.

Home Depot

Home Depot Inc, the largest home improvement retailer in the United States, is expected to report its second-quarter earnings of $4.42 per share, which represents year-over-year growth of about 10% from $4.02 per share seen in the same period a year ago.

The home improvement retailer would post revenue growth of nearly 7% to $40.68 billion. On average, Home Depot has beaten earnings estimates by more than 10% in the last four quarters.

Home Depot shares have gained over 65% so far this year. The stock closed about 1% lower at $334.02 on Thursday. Home Depot’s better-than-expected results, which will be announced on Aug 17, could help the stock hit new all-time highs. But the stock’s performance could hinge on margins.

As reported previously, the home improvement giant earned $3.86 per share, beating Wall Street’s expectation of $0.93, and its revenue grew 32.7% year-over-year to $37.5 billion, more than $5 billion above consensus. Globally, sales grew 31%, while U.S. sales grew 29%.

Analyst Comments

“We are Overweight Home Depot (HD) given its best-in-class nature and structural housing tailwinds beyond N-T disruption from COVID-19. The stock seems attractively valued in the context of a potential 2H’20/2021 economic/housing boom,” noted Simeon Gutman, equity analyst at Morgan Stanley.

Home Depot Stock Price Forecast

Fourteen analysts who offered stock ratings for Home Depot in the last three months forecast the average price in 12 months of $349.83 with a high forecast of $386.00 and a low forecast of $310.00.

The average price target represents a 4.73% change from the last price of $334.02. From those 14 analysts, 10 rated “Buy”, four rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $345 with a high of $430 under a bull scenario and $220 under the worst-case scenario. The firm gave an “Overweight” rating on the home improvement retailer’s stock.

Several other analysts have also updated their stock outlook. Jefferies raised the target price to $380 from $375. Credit Suisse lifted the price target to $357 from $330. Mizuho upped the price objective to $50 from $45.

Check out FX Empire’s earnings calendar

About the Author

Vivek has over five years of experience in working for the financial market as a strategist and economist.

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