The Home Depot Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Home Depot, Inc. (NYSE:HD) will unveil its latest earnings on Tuesday, August 16, 2011. The Home Depot, Inc. is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

The Home Depot, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 82 cents per share, a rise of 13.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 83 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 82 cents during the last month. For the year, analysts are projecting net income of $2.30 per share, a rise of 13.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 50 cents per share against a mean estimate of net income of 49 cents per share.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wall St. Revenue Expectations: On average, analysts predict $19.96 billion in revenue this quarter, a rise of 2.8% from the year ago quarter. Analysts are forecasting total revenue of $69.61 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 11 rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 12% while it rose 71.6% in the fourth quarter of the last fiscal year and 21% in the third quarter of the last fiscal year.

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 0.2% in the first quarter and rose 3.8%in the fourth quarter of the last fiscal year, 1.4% in the third quarter of the last fiscal year and 1.8% in the second quarter of the last fiscal year.

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 May 16, 2011 to August 10, 2011, the stock price had fallen $8.19 (-22.3%) from $36.70 to $28.51. 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% (+$1.85) over that span. It saw one of its worst periods between October 8, 2010 and October 19, 2010 when shares fell for eight-straight days, falling 4.6% (-$1.45) over that span. Shares are down $6.05 (-17.5%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

More from The Cheat Sheet