Ahead Of Home Depot's Q1 Results

(RTTNews) - The Home Depot Inc. (HD) is likely to release its first-quarter numbers before the bell on Tuesday, May 17, with analysts polled by Thomson Reuters estimating earnings of $1.35 per share on revenue of $22.35 billion. Analysts' estimate typically exclude certain special items.

The retailer's focus on improving the interconnected customer experience, along with solid execution and continued recovery in the U.S. housing market bodes well for the company.

FY16 Outlook

The home improvement retailer projects fiscal 2016 sales growth of about 5.1% - 6.0%; comparable store sales growth of about 3.7% - 4.5%; and earnings-per-share growth after anticipated share repurchases of about 12% - 13%, or $6.12 - $6.18. Home Depot noted that the low-end of its sales and earnings-per-share growth guidance reflects the currency impact.

Analysts are looking for earnings of $6.22 per share on revenue of $93.82 billion for fiscal 2016.

In The Last Quarter...

Home Depot reported net earnings of $1.5 billion or $1.17 per share compared to $1.4 billion or $1.05 per share in the same period of prior year. Analysts expected earnings of $1.10 per share for the quarter.

Fourth-quarter sales rose 9.5% to $21.0 billion from the fourth quarter of fiscal 2014. Comparable store sales increased 7.1%, and comp sales for U.S. stores were up 8.9%. Wall Street analysts had a consensus revenue estimate of $20.39 billion for the quarter.

The company's strong sales performance was driven by continued moderate housing recovery, exciting merchandising events, solid execution and a benefit from favorable weather.