The Home Depot Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Home Depot, Inc. (NYSE:HD) will unveil its latest earnings on Tuesday, November 15, 2011. The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.

The Home Depot, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 59 cents per share, a rise of 15.7% 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 57 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 59 cents during the last month. For the year, analysts are projecting profit of $2.35 per share, a rise of 15.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at net income of 86 cents a share versus the estimate of profit of 82 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $17.09 billion in revenue this quarter, a rise of 3% from the year ago quarter. Analysts are forecasting total revenue of $69.64 billion for the year, a rise of 2.4% from last year’s revenue of $68 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the second quarter, profit rose 14.3% to $1.36 billion (86 cents a share) from $1.19 billion (72 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.2% to $20.23 billion from $19.41 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 12% in the first quarter and 71.6% in the fourth quarter of the last fiscal year.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 0.2%.

Competitors to Watch: Lowe’s Companies, Inc. (NYSE:LOW), Builders FirstSource, Inc. (NASDAQ:BLDR), Lumber Liquidators Hldgs., Inc. (NYSE:LL), Tractor Supply Company (NASDAQ:TSCO), Hornbach-Baumarkt-AG (NYSE:HBM), PulteGroup (NYSE:PHM), Toll Brothers (NYSE:TOL), D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), Lennar Corp (NYSE:LEN), Beazer Homes (NYSE:BZH), Sherwin-Williams (NYSE:SHW), Sears Holdings (NASDAQ:SHLD), Target (NYSE:TGT) and Wal-Mart (NYSE:WMT).

Stock Price Performance: During August 16, 2011 to November 9, 2011, the stock price had risen $4.28 (13%) from $32.88 to $37.16. The stock price saw one of its best stretches over the last year between February 7, 2011 and February 18, 2011 when shares rose for 10-straight days, rising 5.1% (+$1.83) over that span. It saw one of its worst periods between August 26, 2011 and September 6, 2011 when shares fell for seven-straight days, falling 5% (-$1.70) over that span. Shares are up $2.85 (+8.3%) year to date.

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

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