While its rival Lowe's Companies Inc. (NYSE: LOW) reported weak quarterly results today, Home Depot Inc. (NYSE: HD) is scheduled to discuss its second quarter 2009 results tomorrow morning in a conference call at 9:00 AM ET. You can catch the live webcast on the company's website.
In that quarter, Home Depot declared a quarterly dividend of 22.5 cents per share, as well as shared its long-term priorities with analysts. The Atlanta-based home improvement chain is expected to report that earnings fell 16.9% from a year ago to $0.59 per share, according to analysts surveyed by Thomson Reuters. That's up from better-than-expected $0.35 per share in the first quarter, though. Revenue for the second quarter is expected to be 8.4% lower to $19.2 billion. Earnings have topped estimates in recent quarters, by as much as 10 cents per share.
For the full year, analysts are so far looking for $1.44 per share (-19.1%) on sales of $65.4 billion (-8.3%).
Home Depot's earnings multiple is 18x and its long-term EPS growth forecast is 10.6%, which is less than that of Lowe's. Short interest dropped off significantly between June and July, but net cash flow from operations has been dropping in recent quarters. Yet the First Call consensus recommendation remains to buy HD, though Warren Buffett sold shares recently.
Shares have risen more than 10% in the past three months, rising above the 50-day moving average in mid July for the first time since mid May, and they are creeping up on the 52-week high of $30.74 from nearly a year ago.
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Reader Comments (Page 1 of 1)
8-19-2009 @ 8:38AM
Les Clark said...
I work at a Home Depot. While we do have a Lowes and another Home Depot nearby, our foot traffic appears to be up. We are striving to solve the customer's project problems or enhance what the customer is trying to do and that strategy seems to be working. There's more personal interaction but it's diametrically opposed to the harassing and overbearing service you get at a furniture store. We really do want the customer to walk out of the store with all or most everything (some people forget to measure) they need to complete their project. I think this will boost sales in our store, at least.