Earnings Preview: Will Home Depot (HD), Lowe's (LOW) Beat Second Quarter Estimates On US Housing Recovery? [VIDEO]
Although second quarter earnings season is winding down, this week is a big week for retail and housing as The Home Depot Inc. and Lowe's Companies Inc. are scheduled to report quarterly results.
Peter P. Costa, president of Empire Executions, Inc., spoke to the International Business Times from the floor of the New York Stock Exchange on Friday, August 16 to discuss what to watch for on this week’s earnings and economic calendar.
“First of all, let’s starts with the Lowe’s numbers and how they blamed the weather conditions which, to me, is pretty funny because they’re in the same market that Home Depot is; but, that being said I think they did very well in the first quarter and I think you’re going to see it again,” said Costa. “I don’t think there’s going to be a slowdown in that department. If you ever go in one of their stores, either one of them, they’re busy, and do think it’s going to continue.”
On Tuesday, The Home Depot Inc. (NYSE:HD) is expected to report second quarter earnings of $1.21 per share on revenue of $21.8 billion, according to analysts polled by Reuters. During the same year-ago period, the world’s largest home improvement retailer issued earnings of $1.01 per share on revenue of $20.6 billion.
On Monday, shares of The Home Depot Inc. edged up 0.65 percent to $75.85 in afternoon trading.
This is a big week for housing data, as U.S. new home sales and existing home sales for July are issued, along with the FHFA home price index for June. Economists will also be looking to Wednesday’s release of the minutes from the Federal Reserve’s latest policy meeting in July.
“More importantly we have housing numbers coming out and I think that’s what a lot of people are going to be focusing on, and the Fed minutes,” added Costa.
On Wednesday, Lowe's Companies Inc. (NYSE:LOW) is forecast to report second quarter earnings of 79 cents per share on revenue of $15.05 billion, according to analysts polled by Reuters. The world’s second-largest home improvement retailer reported earnings of 64 cents on revenue of $14.3 billion in the year-ago quarter.
“The thing that you’ll want to watch with them is, obviously, their expectations for the third and fourth quarter,” said Costa. “That’s very important.”
Shares of Lowe's Companies Inc. were down 0.39 percent to $43.79 in afternoon trade.
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