Home Depot (HD) Q3 earnings: EPS growth, sales, stock price outlook

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Home Depot (HD) Q3 earnings: EPS growth, sales, stock price outlook

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 Home Depot (HD) Q3 earnings: EPS growth, sales, stock price outlook
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Highlights

  • Analysts forecast an EPS growth of US$3.4 in the third quarter, up from US$3.18 in the same period a year ago.

  • In the fiscal quarter ended July, its EPS was US$4.53, more than analysts’ forecast of US$4.43.

  • Nearly three dozen Wall Street analysts offered a median 12-month share price target of US$360.00, with a high of US$425.00 and a low of US$310.00.

World’s largest home improvement retailer Home Depot, Inc. (NYSE: HD), is all set to report its third-quarter earnings results before the market opens on Tuesday.

Home Depot has been a major focus of Wall Street analysts after it reported the second consecutive quarter of EPS growth in fiscal 2021.

Analysts now forecast an EPS growth of US$3.4 in the quarter, up from US$3.18 in the same period a year ago. In the fiscal quarter ended July, its EPS was US$4.53, more than analysts’ forecast of US$4.43. Likewise, in the quarter ended in April, its EPS was US$3.86 against a projection of US$3.04.

In the fiscal Q3 ended Oct 2020, its EPS was US$3.18 against analysts’ prediction of US$3.08

Stock Price Forecast, Performance

Nearly three dozen analysts polled by CNN offered a median 12-month price target of US$360.00 per share, with a high of US$425.00 and a low of US$310.00.

The median price represents a decline of 3.55% from its previous close of US$373.24.

On Monday, the stock was trading at US$373.90, up 0.34%, in the premarket at 9:29 am ET.

The stock grew by more than 41% YTD.

The stock’s 52-week highest and lowest prices were US$375.15 US$246.59, respectively.

The Georgia-based company has a market cap of around US$394 billion.

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 Home Depot Inc (HD) has been a major focus of Wall Street analysts after it reported the second consecutive quarter of EPS growth in fiscal 2021.

Source: Pixabay

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Second-Quarter Snapshot

Home Depot reported total sales of US$41.1 billion in the second quarter of FY21, up 8.1% from the year-ago period.

Its net earnings rose to US$4.8 billion, or US$4.53 per diluted share, from US$4.3 billion, or US$4.02 per diluted share a year ago.

Its diluted earnings per share jumped 12.7% YoY in the second quarter.

Home Depot provides customers with building materials, home improvement products, lawn and garden products, decor items, tools, rental equipment, etc.

It operates around 2,296 stores in the US, Puerto Rico, Guam, Canada, and Mexico.

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Bottomline

Despite supply bottlenecks and labor shortages, the US retail sector has seen robust growth over the past few months. The upcoming holiday sales season is expected to give a big push to the industry this year, marred by covid disruptions. However, investors should evaluate the companies carefully before investing in the stock market.

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