Earnings Preview: Home Depot

MAE ANDERSON

NEW YORK (AP) — Home Depot Inc., the largest U.S. home-improvement retailer, reports earnings for the fiscal third quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Home Depot and other home-improvement retailers have faced sales declines as consumers hold back on do-it-yourself projects amid worry over jobs and home values. Although the U.S. housing market is stabilizing, after a nearly three-year decline, home prices remain far below their peak.

On Monday Home Depot's smaller rival Lowe's Cos. reported third-quarter profit fell 30 percent as sales declined 3 percent. Still, the company said some of the hardest-hit home markets are stabilizing and said it expects this year's fourth quarter to be stronger than last year's.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters, on average, predict a profit of 36 cents per share on revenue of $16.27 billion.

ANALYST TAKE: Jefferies & Co. analyst Daniel Binder said in a note to investors that sales in stores open at least one year, a key measure of a retailer's financial health since it excludes sales from new stores, likely fell 8 percent during the quarter.