Retail

What to Expect From Home Depot and Lowe's Earnings

476458559
Source: Thinkstock
Home Depot Inc. (NYSE: HD) and Lowe’s Companies Inc. (NYSE: LOW) are set to report earnings this Tuesday and Wednesday mornings, respectively. These two home improvement giants will be fighting it out for the best fourth-quarter financial results.

Home Depot has Thomson Reuters consensus estimates of $0.89 in earnings per share (EPS) on $18.70 billion in revenue for the fourth quarter. The same period of the previous year had $0.73 in EPS and $17.7 billion in revenue.

For its spring shopping season, Home Depot has said it will add 80,000 workers. The company operates nearly 2,000 stores in the United States, so on average it plans to hire about 40 permanent part-time and seasonal employees per store. But that is an average, and some states and stores are not slated to gain any new employees, according to a map at the company’s website.

Jefferies reiterated a Buy rating for Home Depot and raised its price target to $130 from $113 on February 12, implying an upside of 15.8% from Friday’s close of $112.24. Barclays also raised its price target to $130 in mid-February as well with an Overweight rating.

Shares were trading relatively flat at $112.09, approaching Friday’s close. The stock has a consensus analyst price target of $111.00 and a 52-week trading range of $74.61 to $113.16.

Lowe’s has Thomson Reuters consensus estimates of $0.44 in EPS on $12.31 billion in revenue for the fourth quarter. Last year’s fourth quarter had $0.31 in EPS on $11.66 billion in revenue.

This home improvement giant ranks the highest with consumers out of its group, and it ranks high with the Deutsche Bank team, as they consider the stock a top pick, and one that can beat earnings estimates. The analysts are clear that the stock is expensive, but an earnings beat and solid guidance could lift the stock. A pickup in residential home sales could also offer a tailwind for the stock in 2015.

Recently Jefferies reiterated a Hold rating for Lowe’s and raised its price target to $69 from $62 on February 12. This call implies a downside of 6.2% from Friday’s close of $73.56. This is also above the consensus analyst price target of $71.57, which implies a downside of 2.7%.

Shares were relatively flat at $73.50. The stock has a 52-week trading range of $44.13 to $74.34.

ALSO READ: The Richest County in Each State

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.