What To Expect When Home Depot (HD) Reports Its First Quarter Results Tomorrow Morning

NEW YORK (TheStreet) -- Shares of Home Depot (HD) were falling 0.1% to $113.27 Monday ahead of the retailer's first quarter of fiscal 2016 earnings report before the opening bell on Tuesday.

Analysts expect Home Depot to report earnings of $1.15 a share and revenue of $20.82 billion for the first quarter.

Home Depot reported earnings of 96 cents a share in the year-ago quarter, missing analysts' estimates of 99 cents a share. The company reported revenue of $19.69 billion in the first quarter of fiscal 2015, below analysts' estimates of $19.95 billion.

The company reported earnings of $1 a share in the fourth quarter of fiscal 2015, above analysts' estimates of 89 cents a share. Home Depot reported revenue of $19.16 billion in the previous quarter, above analysts' estimates of $18.7 billion.

TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 43.83% and other important driving factors, this stock has surged by 46.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HOME DEPOT INC has improved earnings per share by 43.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HOME DEPOT INC increased its bottom line by earning $4.72 versus $3.75 in the prior year. This year, the market expects an improvement in earnings ($5.22 versus $4.72).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 36.1% when compared to the same quarter one year prior, rising from $1,013.00 million to $1,379.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, HOME DEPOT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: HD Ratings Report

If you liked this article you might like

18 Best Stock Picks for the Impending Consumer Spending Boom

18 Best Stock Picks for the Impending Consumer Spending Boom

Home Depot Exec Reveals One Secret Behind the Company's Massive Success

Home Depot Exec Reveals One Secret Behind the Company's Massive Success

Dow Drops Over 250 Points to End Six-Session Winning Streak

Dow Drops Over 250 Points to End Six-Session Winning Streak

Home Depot CFO: We Have Barrier Islands Around Us That Protect Us From Amazon

Home Depot CFO: We Have Barrier Islands Around Us That Protect Us From Amazon

UPS's Long-Tenured Board Members Are a Red Flag for Investors

UPS's Long-Tenured Board Members Are a Red Flag for Investors