Why Home Depot Earnings Are Not Pleasing to Investors


Baird's price objective indicates a potential upside of 11.88% from the stock's current price.

Several other research analysts also recently issued reports on the company.

The Home Depot, Inc. has been given an analysts' mean target of 172.83. Citigroup Inc. reissued a "buy" rating on shares of The Home Depot in a research report on Wednesday, December 28th. Bank of America Corp. reissued a "buy" rating and issued a $128.72 price target (up from $127.67) on shares of The Home Depot in a research report on Tuesday, November 15th. The firm earned "Hold" rating on Wednesday, August 19 by S&P Research. Moreover, Pettee Investors Incorporated has 1.2% invested in Home Depot Inc (NYSE:HD) for 8,812 shares. Finally, Jefferies Group reissued a "buy" rating and issued a $149.00 price target on shares of The Home Depot in a research report on Wednesday, November 16th. Home Depot stock set its all-time intraday high of $167.94 on October 26. At present, 0 analysts call it Sell, while 9 think it is Hold. The stock now has a consensus rating of "Buy" and a consensus price target of $173.18. (NYSE:HD) traded up $1.24 during trading on Tuesday, reaching $165.35.

Analysts, on average, had expected earnings of $1.82 per share.

On Tuesday, Home Depot, the largest U.S. home improvement chain, raised its full-year profit and sales forecast again after hurricanes Harvey and Irma spurred demand for generators, flashlights and rebuilding materials. The company has a market cap of $193,455.83, a price-to-earnings ratio of 23.58, a P/E/G ratio of 1.65 and a beta of 1.08.

Analysts expect Home Depot Inc (NYSE:HD) to report $1.80 EPS on November, 21.They anticipate $0.20 EPS change or 12.50% from last quarter's $1.6 EPS. The home improvement retailer reported $1.84 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $1.80 by $0.04. Home Depot also lifted diluted EPS guidance from a prior estimate of $7.29 to $7.36, up 14% including the impact of $8 billion in share buybacks for the 2017 fiscal year.

Home Depot's net sales rose 8 percent to $25.03 billion in the third quarter, helped by a 5 percent jump in average receipt and a 2.5 percent rise in transactions. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.97% with $1.18 Billion sitting short, betting on future declines. After $2.25 actual earnings per share reported by Home Depot Inc for the previous quarter, Wall Street now forecasts -20.00% negative EPS growth.

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In pre-market activity, Home Depot shares were gaining around 1.43 percent to trade at $168.08. The shares were sold at an average price of $157.10, for a total transaction of $5,027,200.00. Masters Capital Management Llc sold 500,000 shares as the company's stock rose 9.91% with the market. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Roseborough Teresa Wynn had sold 29,076 shares worth $4.57M. The stock was sold at an average price of $152.40, for a total value of $1,633,270.80. With an institutional ownership near 0%, it carries an earnings per share ratio of 0.32. Cohen & Steers Inc. now owns 35,400,000 shares of the home improvement retailer's stock valued at $32,480,000 after buying an additional 35,306,300 shares in the last quarter. (The) (NYSE:HD) by 4.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). Barrett Asset Management LLC now owns 64,891 shares of the home improvement retailer's stock worth $9,528,000 after purchasing an additional 2,824 shares in the last quarter. (HD), Week Volatility is 1.09%, whereas Month Volatility is at 1.17%. (The) by 16.4% in the 2nd quarter. Finemark National Bank & invested in 103,728 shares or 1.14% of the stock. Riggs Asset Managment Co. The stock of Home Depot Inc (NYSE:HD) earned "Neutral" rating by Piper Jaffray on Monday, October 31. (The) by 14.4% in the first quarter. Following the transaction, the director now directly owns 31,095 shares of the company's stock, valued at approximately $4,038,307.65. (The) by 83.5% in the 3rd quarter. Waldron LP now owns 4,004 shares of the home improvement retailer's stock valued at $573,000 after acquiring an additional 2,041 shares during the period.

Shares of Home Depot, Inc. (The) by 63.4% in the 3rd quarter.

At Home Group (NASDAQ:HOME) last announced its quarterly earnings data on Tuesday, September 5th. Finally, Tufton Capital Management bought a new stake in Home Depot, Inc.

"The home improvement sector continues to paint a better outlook as it sidesteps broader retail woes", said Moody's Vice President Bill Fahy.

People have proven willing to go to physical stores to buy home improvement products and tools, especially contractors and builders.