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The Home Depot, Inc. (NYSE:HD) is scheduled to report its Q2 2012 results on August 14, 2012, before market opens. The street expects EPS and revenue of $0.97 and $20.76B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from HD and the news from its closest competitors.

The Home Depot, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.65 EPS, in-line with analyst estimates.

The Home Depot, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.97 based on 26 analysts' estimates, up from $0.86 a year ago. Revenue estimates are $20.76B, up from $20.23B a year ago. The median target price by analysts for the stock is $57.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 8, 2012, Barclays reiterated Overweight rating for the company.
  • On March 20, 2012, Deutsche Bank reiterated Hold rating for the company.
  • On February 22, 2012, UBS reiterated Buy rating for the company.
  • On February 22, 2012, RBC Capital Mkts reiterated Outperform rating for the company.

Latest News

  • On August 7, 2012, The Home Depot, Inc. announced a definitive merger agreement for The Home Depot to acquire USHS. USHS, based in Irving, Texas, is currently an exclusive provider of kitchen and bath refacing products and services as well as closet and garage organizational systems to The Home Depot.
  • On July 3, 2012, Electrolux AB (Electrolux) announced that The Home Depot will begin selling Electrolux major appliances in the United States. In a staged roll-out, Electrolux's main appliances, under the Frigidaire, Frigidaire Gallery and Electrolux brands, will be available for purchase at The Home Depot.
  • On June 19, 2012, The Home Depot, Inc. announced that for fiscal 2012, including the 53rd week, it is projecting sales growth of 4.6%. The Company reported revenue of $70.395 billion in fiscal 2011.
  • On June 6, 2012, The Home Depot, Inc. reaffirmed its sales and diluted earnings-per-share (EPS) guidance for fiscal 2012. The Company still expects sales to be up approximately 4.6% for the year on a 53 week basis and diluted EPS to be up approximately 17% to $2.90 for fiscal 2012.
  • On May 17, 2012, The Home Depot, Inc. announced that its Board of Directors declared a first quarter cash dividend of 29 cents per share. The dividend is payable on June 14, 2012, to shareholders of record on the close of business on May 31, 2012.
  • On May 15, 2012, The Home Depot, Inc. announced that based on year-to-date performance, the Company updated fiscal 2012 guidance and now expects sales to be up approximately 4.6% for the year on a 53-week basis.
  • On March 6, 2012, The Home Depot, Inc. announced that for fiscal 2012, it expects sales growth of about 4%, low-single-digit comparable sales growth, diluted earnings per share growth of approximately 10% to $2.72 a share before repurchases, diluted earnings per share, after the anticipated share repurchases, will grow approximately 13% to $2.79 a share.
  • On February 23, 2012, The Home Depot, Inc. announced that its Board of Directors declared a fourth quarter cash dividend of $0.29 per share. The dividend is payable on March 22, 2012, to shareholders of record on the close of business on March 8, 2012.
  • On February 21, 2012, The Home Depot, Inc. announced that for fiscal 2012, it expects sales growth of approximately 4%, comparable store sales growth of low single-digit, diluted earnings-per-share growth before share repurchases of approximately 10% to $2.72, diluted earnings-per-share growth after anticipated share repurchases of approximately 13% to $2.79. The Company reported revenue of $70.395 billion in fiscal 2011 According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $72.55 billion and EPS of $2.77 for fiscal 2012.

Competitors

Bed Bath & Beyond (NASDAQ:BBBY), J. C. Penney Company (NYSE:JCP), Lumber Liquidators Holdings (NYSE:LL), Lowe's (NYSE:LOW), and Wal-Mart (NYSE:WMT) are peers for comparison for Home Depot and the table below provides the key metrics for these companies and the industry.

The Home Depot, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

HD Chart

HD data by YCharts

Competitors' Latest Development

  • On July 31, 2012, Lowe's Companies, Inc. confirmed that it has made a non-binding proposal to the Board of Directors of Canadian home improvement and hardware retailer RONA Inc. to acquire all of the issued and outstanding common shares of RONA for CAD14.50 in cash per share.
  • On July 31, 2012, Reuters reported that RONA Inc. rejected Lowe's Companies, Inc.'s unsolicited $1.8 billion takeover offer. Scotiabank and BMO Capital Markets were Rona's financial advisers for the deal.
  • On July 25, 2012, Lumber Liquidators Holdings Inc announced that based on year-to-date results and current trends, the Company now expects to achieve the following in fiscal 2012: Net sales for fiscal 2012 in the range of $750 million to $775 million, up from the previous range of $720 million to $750 million; an increase in comparable store net sales in the mid-single digits; fiscal 2012 earnings per diluted share in the range of $1.30 to $1.42, which is exclusive of any future impact of the share repurchase program.
  • On July 23, 2012, Reuters reported that J.C. Penney Co Inc raised $248 million by selling part of its stake in a Simon Property Group Inc unit.
  • On July 10, 2012, Reuters reported that J C Penney Company Inc announced another 350 job cuts at its Plano, Texas headquarters, completing a reorganization of its home office designed to help it bring costs in line with those of rivals.
  • On June 26, 2012, Lowe's Companies, Inc. announced that for fiscal 2012, it expects to grow the Company's sales 1% to 3% comparable same store sales (comps), as the Company has outlined on the first quarter call, drive gross margin increase, and take about $200 million of inventory out.
  • On June 20, 2012, Bed Bath & Beyond Inc. announced that for the second quarter of 2012, it expects modeling net earnings per diluted share to be approximately $0.97 to $1.03 and continues to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012, which will be 53 weeks.
  • On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
  • On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
  • On June 1, 2012, Bed Bath & Beyond Inc. announced the all cash acquisition of Linen Holdings, LLC for approximately $105 million. Based in Gibbsboro, New Jersey, Linen Holdings, LLC is a privately-held, value-added distributor of bath, bed and table linens, other textile products and amenities to customers in the hospitality, cruise line, food service, healthcare and other industries.
  • On May 21, 2012, Lowe's Companies, Inc. announced that for fiscal 2012, it expects total sales to increase 1%-2%, comparable store sales to increase 1%-3% and diluted earnings per share of $1.73-$1.83. The Company reported sales of $48.815 billion for fiscal 2011.
  • On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share from continuing operations to range between $1.13 and $1.18. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.16 for second quarter of 2013.
  • On May 15, 2012, J C Penney Company Inc reaffirmed fiscal 2012 earnings guidance and expects earnings per share of $2.16 per share which excludes non-cash qualified pension expense, restructuring charges and markdown reserves as the Company transition merchandise assortment.
  • On May 9, 2012, Bed Bath & Beyond Inc. and Cost Plus, Inc. jointly announced that they have entered into a definitive agreement under which Bed Bath & Beyond Inc. will acquire Cost Plus, Inc. in an all cash transaction.
  • On May 8, 2012, Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Wal-Mart Stores, Inc. common stock during the period between December 8, 2011 and April 20, 2012.

Technical Overview


The stock has a market capitalization of $79.59B and is currently trading at $52.11 with a 52 week range of $28.13 - $54.28. The stock's year-to-date performance has been 25.18%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Home Depot Reports Q2 Results On Aug. 14