Home Depot (HD) Releases FY18 Earnings Guidance

Home Depot (NYSE:HD) updated its FY18 earnings guidance on Wednesday. The company provided EPS guidance of $7.36 for the period, compared to the Thomson Reuters consensus EPS estimate of $7.39. The company issued revenue guidance of +6.3% YoY to ~$100.6 billion, compared to the consensus revenue estimate of $100.68 billion.

Several research firms have recently issued reports on HD. Deutsche Bank lifted their price objective on shares of Home Depot from $176.00 to $200.00 and gave the stock a buy rating in a research report on Thursday, December 7th. Zacks Investment Research upgraded shares of Home Depot from a hold rating to a buy rating and set a $179.00 price target on the stock in a research note on Monday, September 11th. Argus lifted their price target on shares of Home Depot from $180.00 to $190.00 and gave the stock a buy rating in a research note on Wednesday, November 15th. Robert W. Baird set a $175.00 price target on shares of Home Depot and gave the stock a buy rating in a research note on Friday, October 13th. Finally, Atlantic Securities upgraded shares of Home Depot from a neutral rating to an overweight rating and lifted their price objective for the company from $174.16 to $174.95 in a research note on Tuesday, November 28th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $183.28.

Shares of Home Depot (HD) traded down $0.25 during mid-day trading on Friday, reaching $189.53. 4,637,073 shares of the company traded hands, compared to its average volume of 4,953,805. Home Depot has a 1 year low of $133.05 and a 1 year high of $191.49. The company has a quick ratio of 0.39, a current ratio of 1.23 and a debt-to-equity ratio of 9.54. The firm has a market capitalization of $221,615.41, a price-to-earnings ratio of 26.32, a price-to-earnings-growth ratio of 1.93 and a beta of 1.11.

Home Depot (NYSE:HD) last issued its quarterly earnings results on Tuesday, November 14th. The home improvement retailer reported $1.84 EPS for the quarter, topping the consensus estimate of $1.81 by $0.03. Home Depot had a net margin of 8.66% and a return on equity of 238.88%. The firm had revenue of $25.03 billion during the quarter, compared to analyst estimates of $24.53 billion. During the same quarter in the prior year, the business posted $1.60 earnings per share. Home Depot’s revenue for the quarter was up 8.1% compared to the same quarter last year. sell-side analysts anticipate that Home Depot will post 7.35 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, December 14th. Stockholders of record on Thursday, November 30th were given a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 1.88%. The ex-dividend date of this dividend was Wednesday, November 29th. Home Depot’s payout ratio is currently 49.44%.

Home Depot announced that its board has initiated a stock repurchase program on Wednesday, December 6th that allows the company to repurchase $15.00 billion in shares. This repurchase authorization allows the home improvement retailer to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

In other news, EVP Matt Carey sold 41,396 shares of the stock in a transaction on Friday, December 8th. The shares were sold at an average price of $183.03, for a total value of $7,576,709.88. Following the completion of the sale, the executive vice president now owns 29,559 shares of the company’s stock, valued at $5,410,183.77. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.26% of the stock is owned by corporate insiders.

Several hedge funds have recently made changes to their positions in the company. Wela Strategies Inc. bought a new position in Home Depot during the 2nd quarter valued at $217,000. Beach Investment Management LLC. boosted its stake in Home Depot by 1,023.1% during the 2nd quarter. Beach Investment Management LLC. now owns 68,511 shares of the home improvement retailer’s stock valued at $10,510,000 after acquiring an additional 62,411 shares during the last quarter. Capital Advisors Inc. OK boosted its stake in Home Depot by 0.5% during the 2nd quarter. Capital Advisors Inc. OK now owns 17,544 shares of the home improvement retailer’s stock valued at $2,691,000 after acquiring an additional 95 shares during the last quarter. Autus Asset Management LLC boosted its stake in Home Depot by 2.5% during the 2nd quarter. Autus Asset Management LLC now owns 2,197 shares of the home improvement retailer’s stock valued at $337,000 after acquiring an additional 54 shares during the last quarter. Finally, Gerber Kawasaki Wealth & Investment Management boosted its stake in Home Depot by 6.4% during the 2nd quarter. Gerber Kawasaki Wealth & Investment Management now owns 7,075 shares of the home improvement retailer’s stock valued at $1,069,000 after acquiring an additional 425 shares during the last quarter. Institutional investors and hedge funds own 70.13% of the company’s stock.

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About Home Depot

The Home Depot, Inc (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.

Earnings History and Estimates for Home Depot (NYSE:HD)

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