How Analysts View Home Depot After Earnings

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Home Depot Inc. (NYSE: HD) reported its fiscal second-quarter financial results before the markets opened on Tuesday. The long and short of the matter was that results were more or less in line with estimates, but investors were less than enthusiastic and the response in the stock was flat. However this did not stop a few analysts from weighing in on the company after the release.

24/7 Wall St. has included some highlights from the earnings report as well as what analysts are saying after earnings were reported.

The company said that it had $1.97 in earnings per share (EPS) on $26.5 billion in revenue. The consensus estimates from Thomson Reuters called for $1.97 in EPS on revenue of $26.48 billion. Home Depot posted EPS of $1.73 and $24.83 billion in revenue in the same period of last year.

Comparable store sales for the most recent quarter were up 4.7%, and comp sales for U.S. stores were positive 5.4%.

Home Depot reaffirmed its fiscal 2016 sales guidance and expects sales will rise by roughly 6.3% and comp sales will be up about 4.9%. However, on the bottom line, the company raised its diluted EPS guidance for the year and now expects diluted EPS to grow by 15.6% from fiscal 2015 to $6.31. The consensus estimates call for $6.31 in EPS on $94.3 billion in revenue for the fiscal year.

After earnings were reported, a few analysts weighed in on the home improvement giant:

  • Nomura reiterated a Buy rating.
  • Wedbush has an Outperform rating with a $145 price target.
  • Argus has a Buy rating and raised its price target to $154.
  • Citigroup has a Buy rating and raised its price target to $155 from $152.
  • Deutsche Bank has a Buy rating and raised its price target to $145 from $143.
  • Royal Bank of Canada has an Outperform rating and raised its price target to $155 from $150.
  • JPMorgan reiterated a Buy rating with a $142 price target.

Shares of Home Depot were last trading at $136.25, with a consensus analyst price target of $149.24 and a 52-week trading range of $92.17 to $139.00.