People put on protecting face masks exterior Home Depot in the Flatiron district as the metropolis continues Phase 4 of re-opening following restrictions imposed to gradual the unfold of coronavirus on August 8, 2020 in New York City.
Noam Galai | Getty Images
Home Depot is set to report its fiscal fourth-quarter earnings before the bell Tuesday.
Here’s what Wall Street is anticipating, primarily based on Refinitiv’s consensus estimates:
- Earnings per share: $2.62, anticipated
- Revenue: $30.73 billion, anticipated
The retailer’s outcomes will point out whether or not pandemic traits and the actual property market proceed to carry dwelling enchancment gross sales. The firm is additionally getting ready for spring, which is usually its busiest season.
During the pandemic, Americans have had a “nesting” mindset and their properties have served a variety of functions, from distant classroom and workplace to health club. Consumers have taken up do-it-yourself tasks and employed professionals for dwelling renovations. Some have moved out of densely populated cities and purchased homes in suburban or rural areas, as they search more room or make the most of low rates of interest.
At Home Depot, that has boosted enterprise. Its U.S. same-store gross sales grew by about 25% in the second and third quarters, as shoppers visited the retailer’s shops and website extra and spent extra money. Its digital gross sales rose 80% 12 months over 12 months in the third quarter, with clients selecting up most of these on-line orders at shops.
Analysts expect Home Depot’s same-store gross sales will develop by 19.2% in the fourth quarter, a big acquire however slower charge than the peak of the pandemic, in accordance to a StreetAccount survey.
Home Depot has not offered an outlook for the 12 months. It faces robust comparisons in the coming quarters due to the large numbers it put up throughout the pandemic. It might have to work tougher for pockets share, too, as shoppers get Covid-19 vaccines and spend weekends out to dinner or on trip as a substitute of portray or doing restore tasks. Its gross sales may very well be buoyed, nevertheless, by a rebound of dwelling professionals’ companies, as shoppers really feel extra snug inviting individuals into their homes and pay for tasks they postpone or could not deal with on their very own.
About 45% of Home Depot’s gross sales come from execs, comparable to plumbers, electricians and contractors, with the relaxation coming from do-it-yourself clients. That’s the next proportion from rival Lowe’s, which will get 20% to 25% of its gross sales from execs. Home Depot additionally counts bigger dwelling professionals as shoppers.
Home Depot might construct on that benefit with HD Supply. It acquired the former unit of the firm and enormous industrial merchandise distributor in November in a deal valued at $8 billion.
As of Monday’s shut, Home Depot’s shares are up greater than 12% from a 12 months in the past. The firm’s market worth is $296.98 billion.
This story is growing and will probably be up to date.