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

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

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