Earnings Preview: Home Depot

| About: Home Depot, (HD)

Home Depot (NYSE:HD) is expected to report Q1 earnings before the market open on Tuesday, May 15 with a conference call scheduled for 9:00 am ET.


Analysts are looking for EPS of 65c on revenue of $17.93B. The consensus range is 59c-69c for EPS, and $17.42B-$18.39B for revenue, according to First Call. At the Raymond James 33rd Annual Institutional Investors Conference, Home Depot forecast FY12 EPS growth of about 10% to $2.72 before share repurchases and $2.79 after share repurchases, consensus $2.91. The home improvement retailer also affirmed FY12 sales growth of about 4% vs. 2011, consensus $74.11B, and same-store sales growth in the low single digits. Additionally, Home Depot said it was targeting $3.5B for share repurchases in 2012, forecast FY12 cash flow from the business about $6.6B, and guided for moderate gross margin expansion in FY12. The company said it was making good progress against its 10/15 targets. Forbes said Home Depot, which is not as bullish on the 2012 housing recovery as many analysts are, looked to strengthen its operations through its seasonal sales, basic maintenance, repair and remodeling needs of homeowners looking after aging homes.

Analyst Views

During the quarter, Home Depot was upgraded to Overweight from Neutral at Piper Jaffray after its proprietary survey indicated homeowners plan to spend more on home improvement this year.