Home Depot (HD) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - Wall Street anticipates a year-over-year increase in Home Depot's earnings driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Home Depot is expected to report quarterly earnings of $3.84 per share, reflecting a year-over-year increase of 1.6% [3]. - Revenue projections stand at $41.02 billion, indicating a 2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.15% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Home Depot is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.98%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [9][10]. - Home Depot's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Home Depot was expected to earn $4.71 per share but reported $4.68, resulting in a surprise of -0.64% [13]. - Over the past four quarters, Home Depot has beaten consensus EPS estimates twice [14]. Conclusion - Home Depot does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].