Home improvement giant Home Depot Inc. (NYSE: HD) will get its chance to impress Wall Street tomorrow morning when it reports its second quarter numbers before the market opens. It has been a tough couple of months for home builders recently, and tomorrow morning we will see just how hard the slowdown has been for Home Depot.If recent history is any indication, it could be an ugly day for the Atlanta based home retailer. The last time the company reported earnings was back on May 15, when it disappointed and missed estimates by 6 cents, showing earnings of 53 cents per share verse analyst estimates for 59 cents during its fiscal first quarter.
Out of the last four quarters, the company has managed to match estimates just one quarter. I wish I could say that I think this will be the quarter that the company turns things around, but I don't. The housing market has just been too brutal, and home builders have been too hard hit to put too much confidence in Home Depot's ability to come through this past quarter. Let's hope that I am wrong.
Home Depot will host a conference call starting at 9:00 AM EDT tomorrow morning to discuss its most recent quarter in more detail and we will be liveblogging the call in its entirety. So be sure to check back tomorrow to find out whether or not Home Depot is able to reverse its recent trend and out pace Wall Street estimates.
Here is a one year chart on the company heading into tomorrow's announcement:
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.
Struggling Playboy outsources business ops
J. Crew earnings preview: A strong Q3 all buttoned up?
Twitter to make acquisitions, generate revenue in 2010
Reader Comments (Page 1 of 1)
8-13-2007 @ 6:52PM
Jerry Bluhm said...
HD numbers will probably not be great, however, maybe not as bad as some may think. Still, we could see the stock price drop a little more from here. So much un-certainty surround HD.
8-13-2007 @ 4:29PM
Michael Fowlkes said...
Jerry,
I agree, the stock is going to continue to show some more weakness. Even if its numbers are even or slightly below estimates its going to be tough on the stock.
One thing I failed to mention in my post, which will be something of interest tomorrow will be what we find out about its market share verse its main competitor, Lowes. Lately it has been losing customers to Lowes and it will be interesting to see what we find out on that subject as well.
Michael
8-13-2007 @ 5:55PM
john livers said...
what is the status of the sale of the supply units ??