We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Home Depot (HD) is Poised for Earnings Beat in Q4
Read MoreHide Full Article
The Home Depot, Inc. (HD - Free Report) is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Feb 22, before market open. The Zacks Consensus Estimate for its fiscal fourth-quarter earnings of $3.20 per share suggests growth of 16.8% from the year-ago period’s reported figure. The consensus estimate has been unchanged in the past 30 days.
The consensus mark for quarterly revenues is pegged at $34.61 billion, indicating an increase of 7.3% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 15%. The leading home improvement retailer delivered an earnings surprise of 12.1% in the last four quarters, on average.
Home Depot’s fourth-quarter fiscal 2021 performance is expected to have benefited from the continued solid demand for home improvement projects, a robust housing market and ongoing investments. The company has been gaining from growth in the Pro and DIY customer categories, as well as digital momentum.
Strength across its business and geographies is expected to have boosted the sales performance in the fiscal fourth quarter.
Home Depot has been witnessing significant benefits from the execution of its "One Home Depot" plan, which focuses on expanding the supply chain, technology investments and digital enhancements. The company’s interconnected retail strategy and underlying technology infrastructure have been consistently boosting web traffic for the past few quarters. This is expected to have aided digital sales in the to-be-reported quarter.
The company has also been benefiting from enhanced delivery and fulfillment options to provide a robust interconnected experience. Gains from the efforts are likely to have aided its sales and earnings performance in the fiscal fourth quarter.
Home Depot’s Pro segment has been a key growth driver, with the Pro segment witnessing robust sales growth for the past several quarters. Growth in the Pro segment is expected to have been driven by significant demand for larger projects in the home improvement industry. The company is likely to have witnessed continued strength in several Pro-heavy categories like drywall, pipe and fittings, and several millwork categories.
On the last reported quarter’s earnings call, management anticipated continued sales growth from Pros, driven by strong project demand and growing backlogs.
However, the company is anticipated to have witnessed a soft gross margin performance in the fiscal fourth quarter, owing to the higher cost of goods sold arising from higher transportation costs and mix of products sold. Supply-chain headwinds are also expected to have marred the results to some extent.
Zacks Model
Our proven model conclusively predicts an earnings beat for Home Depot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Home Depot has a Zacks Rank #3 and an Earnings ESP of +6.42%.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The consensus mark for LOW’s quarterly earnings has been unchanged in the past 30 days to $1.71 per share. The consensus estimate suggests 28.6% growth from the year-ago quarter’s reported number.
Lowe's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results. The consensus mark for FL’s quarterly revenues is pegged at $2.4 billion, which suggests a rise of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved up 2.1% to $1.46 per share in the past 30 days. However, the consensus estimate indicates a 5.8% decline from $1.55 reported in the year-ago quarter.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for COST’s quarterly revenues is pegged at $51.1 billion, which suggests 14% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved up by a penny in the past seven days to $2.67 per share. The consensus estimate for COST suggests growth of 24.8% from the year-ago quarter.
Image: Bigstock
Here's Why Home Depot (HD) is Poised for Earnings Beat in Q4
The Home Depot, Inc. (HD - Free Report) is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Feb 22, before market open. The Zacks Consensus Estimate for its fiscal fourth-quarter earnings of $3.20 per share suggests growth of 16.8% from the year-ago period’s reported figure. The consensus estimate has been unchanged in the past 30 days.
The consensus mark for quarterly revenues is pegged at $34.61 billion, indicating an increase of 7.3% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 15%. The leading home improvement retailer delivered an earnings surprise of 12.1% in the last four quarters, on average.
The Home Depot, Inc. Price and EPS Surprise
The Home Depot, Inc. price-eps-surprise | The Home Depot, Inc. Quote
Key Factors to Note
Home Depot’s fourth-quarter fiscal 2021 performance is expected to have benefited from the continued solid demand for home improvement projects, a robust housing market and ongoing investments. The company has been gaining from growth in the Pro and DIY customer categories, as well as digital momentum.
Strength across its business and geographies is expected to have boosted the sales performance in the fiscal fourth quarter.
Home Depot has been witnessing significant benefits from the execution of its "One Home Depot" plan, which focuses on expanding the supply chain, technology investments and digital enhancements. The company’s interconnected retail strategy and underlying technology infrastructure have been consistently boosting web traffic for the past few quarters. This is expected to have aided digital sales in the to-be-reported quarter.
The company has also been benefiting from enhanced delivery and fulfillment options to provide a robust interconnected experience. Gains from the efforts are likely to have aided its sales and earnings performance in the fiscal fourth quarter.
Home Depot’s Pro segment has been a key growth driver, with the Pro segment witnessing robust sales growth for the past several quarters. Growth in the Pro segment is expected to have been driven by significant demand for larger projects in the home improvement industry. The company is likely to have witnessed continued strength in several Pro-heavy categories like drywall, pipe and fittings, and several millwork categories.
On the last reported quarter’s earnings call, management anticipated continued sales growth from Pros, driven by strong project demand and growing backlogs.
However, the company is anticipated to have witnessed a soft gross margin performance in the fiscal fourth quarter, owing to the higher cost of goods sold arising from higher transportation costs and mix of products sold. Supply-chain headwinds are also expected to have marred the results to some extent.
Zacks Model
Our proven model conclusively predicts an earnings beat for Home Depot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Home Depot has a Zacks Rank #3 and an Earnings ESP of +6.42%.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The consensus mark for LOW’s quarterly earnings has been unchanged in the past 30 days to $1.71 per share. The consensus estimate suggests 28.6% growth from the year-ago quarter’s reported number.
Lowe's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results. The consensus mark for FL’s quarterly revenues is pegged at $2.4 billion, which suggests a rise of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved up 2.1% to $1.46 per share in the past 30 days. However, the consensus estimate indicates a 5.8% decline from $1.55 reported in the year-ago quarter.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for COST’s quarterly revenues is pegged at $51.1 billion, which suggests 14% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved up by a penny in the past seven days to $2.67 per share. The consensus estimate for COST suggests growth of 24.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.