Earnings Previews: Home Depot, Sea, Walmart

While the number of earnings reports due out next week is likely to be far fewer than we have seen over the past few weeks, there are some that typically attract a lot of interest. Many retailers will be reporting results next week, beginning with two Dow Jones industrial average stocks coming up Tuesday morning. Among tech stocks, another Dow stock, a red-hot chipmaker and China’s largest e-commerce company.

We already have previewed three companies scheduled to report quarterly results before markets open on Monday: Oatly, Tyson Foods and Warner Music.

Earlier in the day, we previewed three reports due after markets close on Monday: Bitfarms, IonQ and Lucid.

Here’s a look at three companies on deck for earnings first thing on Tuesday.

Home Depot

Home improvement giant Home Depot Inc. (NYSE: HD) is a Dow Jones industrial average component that has added about 35% to its share price over the past 12 months. So far in 2021, the stock has added more than 40%. The current quarter is not the company’s strongest. The April and July quarters take the honors there. Analysts will be paying close attention to Home Depot’s professional contractor customers for hints about the company’s future prospects.

Of 33 analysts covering the stock, 22 give Home Depot a Buy or Strong Buy rating, and 10 rate the stock at Hold. At a recent price of around $370.70, the stock had outrun its median price target of $360. At the high price target of $425, the upside potential is nearly 15%.

Analysts expect Home Depot to report third-quarter fiscal 2022 earnings per share (EPS) of $3.37, which would be down by more than 25% sequentially but up by 6% year over year. Revenue is forecast at $3.71 billion, down about 16% sequentially and up by 3.5% year over year. For the full fiscal year, EPS are forecast at $14.63, up about 21.6%, on sales of $146.26 billion, up 10.7% year over year.

Home Depot stock trades at 18.5 times expected 2022 EPS, 24.4 times estimated 2023 earnings and 22.9 times estimated 2024 earnings. The stock’s 52-week range is $246.59 to $375.15. Home Depot pays an annual dividend of $6.60 (yield of 1.80%).

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