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Shares of Home Depot Inc. (NYSE: HD ) rose slightly on Wednesday. The stock has fallen 8% over the past 12 months. The home improvement retailer is scheduled to report fourth-quarter 2022 results on Tuesday, Feb. 21, before the market opens. Here’s what to expect from the report:
results
Analysts expect Home Depot to generate revenue of $36 billion for the fourth quarter of 2022. This compares to $35.7 billion reported in the same period last year. In the third quarter of 2022, sales increased 5.6% year-on-year to $38.9 billion.
earnings
Analysts project EPS of $3.27 for Home Depot in Q4. This compares to EPS of $3.21 in the year-ago period. In Q3 2022, EPS increased 8% YoY to $4.24.
Points to note
In the third quarter of 2022, Home Depot’s comparable sales rose 4.3%, while comparable sales in the US rose 4.5%. The company is benefiting from strong demand for home improvement projects and growing from Pro and DIY customers. Despite some softness in certain products and categories, project business remains strong in most departments.
In Q3, inflation across product categories and demand for new products helped drive an 8.8% increase in comp average tickets. However, comp transactions were down 4.4%.
The company posted positive comps in most merchandising departments and with momentum in the project business, recorded double-digit comps in areas like building materials, plumbing and wood. Sales growth in the Pro segment outpaced the DIY segment in Q3. Home Depot has seen an encouraging trend from its larger Pro customers who posted a double compilation in Q3. This momentum is likely to continue into the fourth quarter. In its last quarter call, the company said its Pro customers have a solid backlog. Home Depot believes there will continue to be strong demand for home improvement over the long term.
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