The Home Depot Earnings: What Investors Should Watch

The Home Depot (NYSE:HD) will report earnings before markets open on Tuesday, May 21st. The Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. The Company’s sell a wide assortment of building materials, home improvement and lawn and garden products and provide a number of services. Home Depot operates throughout the U.S. (including Puerto Rico, the Virgin Islands and Guam), Canada, China, and Mexico.

Here is your Cheat Sheet to The Home Depot Earnings:

Earnings Expectations: Analysts expect earnings of $0.76 per share on revenues of $18.67 billion. Currently, the company’s P/E ratio stands at 25.77.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.18 to a profit $1.19. For the current year, the average estimate is a profit of $3.53, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how The Home Depot has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 71,290 66,180 68,000 70,400 74,750
Diluted EPS ($) 1.34 1.57 2.01 2.47 3.00

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 16,010 17,810 20,570 18,130 18,250
Diluted EPS ($) 0.5036 0.68 1.01 0.63 0.6839

Past Performance:
The Home Depot has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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