Home Depot Earnings Preview: Analysts Expect Higher EPS, Revenue

Home Depot HD announces its next round of earnings this Tuesday, November 15, 2011. Here's Benzinga's essential guide to Home Depot's third quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 59 cents/share and revenues of $17.09 billion. Home Depot's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 51 cents/share on revenues of $16.6 billion. We'll have to wait for Tuesday to see if the company reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$0.82	$0.49	$0.30	$0.48
EPS Actual	$0.86	$0.50	$0.36	$0.51

(Estimates Source: Zacks)

Stock Performance:

At last check, shares of Home Depot were trading at $37.16. Since January 1st, shares have given investors a return of 8.3%. For a full 12 months, the return has risen by 1.1%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other consumer discretionary companies are doing? Here are a few of Home Depot's peers in that sector.

• Builders FirstSource BLDR: Hold with a -$0.07 recent quarter EPS
• Lumber Liquidators LL: Hold with a $0.24 recent quarter EPS
• Lowe's Companies LOW: Moderate Buy with a $0.68 recent quarter EPS

Home Depot is in the building products-retail/wholesale industry, which has experienced price/earnings growth of 1%.

Finally, a description of the company's main areas of operation: The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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