Home Depot Inc (HD) Provided Another Beat and Raise Earnings Report, But Shares Slipped

Home Depot Inc (NYSE:HD) posted better-than-expected second quarter results, the best in its history, but its stock traded 2% lower this morning.

Specifically, revenue for the period ended July increased to $28.11 billion from $26.47 billion, topping consensus estimates of $27.84 billion. In addition, the home-improvement chain earned $2.67 billion, or $2.25 per share, in the quarter, compared to consensus estimates of $2.21 per share.

Looking forward, Home Depot now foresees 2017 earnings per share will rise about 13 percent from the prior-year period and sales will climb approximately 5.3 percent.

“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history,” said Craig Menear, chairman, CEO and president. “We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard working associates and the outstanding values brought forth by our supplier partners.”

BTIG analyst Alan Rifkin said, “We rate shares of HD BUY and continues to be our #1 pick. Industry fundamentals remain positive and HD continues to execute well in productivity and online initiatives. Despite its impressive $98B sales base, HD has ample opportunity to grow in Pro, big ticket, MRO and e-comm.”

In addition, in a report released today, Baird analyst Peter Benedict reiterated a Buy rating on HD, with a price target of $175, which implies an upside of 13% from current levels, while Oppenheimer’s Brian Nagel reiterated a Buy rating on the stock and has a price target of $178.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Peter Benedict and Brian Nagel have a yearly average return of 0.9% and a loss of 0.5% respectively. Benedict has a success rate of 59% and is ranked #2413 out of 4618 analysts, while Nagel has a success rate of 47% and is ranked #3514.

Sentiment on the street is mostly bullish on HD stock. Out of 12 analysts who cover the stock, 10 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $175.00, which implies an upside of 13% from current levels.


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