Home Depot is set to report second-quarter earnings before the bell on Tuesday.
Here’s what Wall Street is expecting:
- Earnings per share: $2.22, according to a survey of analysts by Thomson Reuters.
- Revenue: $27.84 billion, Thomson Reuters said.
- Same-store sales: up 4.9 percent, according to Thomson Reuters.
In the fiscal first quarter, Home Depot’s earnings and sales topped Street estimates as more shoppers flocked to its stores. The home improvement retailer also raised its profit outlook for 2017, showing no sign of slowing down anytime soon.
Home Depot has been benefiting both from growth in sales of big-ticket items, which are priced above $900, and from an increase in the average shopper’s ticket.
While the apparel sector within retail is struggling to win shoppers’ dollars, home improvement companies Home Depot and Lowe’s tell a better story. So long as consumers are buying homes, and confidence remains high, their sector within retail continues to outperform the rest; Home Depot and Lowe’s are reporting same-store sales growth that specialty retailers and department stores dream of.
To be sure, there’s still some threat of Amazon encroaching on the home improvement space, Stacey Widlitz, president of SW Retail Advisors, told CNBC’s “Closing Bell” on Monday.
The internet giant recently inked a partnership with Sears to sell Kenmore-branded appliances, with Alexa-enabled capabilities, on Amazon.com. The day the deal was announced earlier this year, Home Depot’s shares tumbled.
As of Monday’s market close, shares of Home Depot have climbed about 13 percent over the past 12 months.
Source: FactSet
This is a developing story. Please check back for updates.