Home Depot Earnings on the Horizon

S&P 500 (NYSE:SPY) component Home Depot (NYSE:HD) will unveil its latest earnings on Tuesday, November 13, 2012. The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.

Home Depot Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 70 cents per share, a rise of 16.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 69 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 70 cents during the last month. For the year, analysts are projecting net income of $2.96 per share, a rise of 19.8% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of $1.01 per share against a mean estimate of net income of 97 cents. The company fell in line with estimates in the first quarter.

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Stock Price Performance: Between August 14, 2012 and November 7, 2012, the stock price rose $7.28 (13.3%), from $54.71 to $61.99. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 10, 2012, when shares rose for nine straight days, increasing 4.8% (+$2) over that span. It saw one of its worst periods between May 2, 2012 and May 9, 2012 when shares fell for six straight days, dropping 4.9% (-$2.60) over that span.

A Look Back: In the second quarter, profit rose 12.4% to $1.53 billion ($1.01 a share) from $1.36 billion (86 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.7% to $20.57 billion from $20.23 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 3.2% in revenue from the year-earlier quarter to $17.89 billion.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and 10 rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.44 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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