Home Depot Inc (NYSE:HD) is likely to deliver lower revenue and earnings when it reports back for its fiscal third quarter before the opening bell on Tuesday, November 14.
The Atlanta-based home improvement retailer has already guided for lower sales and profits throughout 2023, after reporting a smaller-than-expected Q2 decline, as demand for DIY products stays under pressure and customers remain wary of big-ticket purchases.
The third quarter is expected to be no different, with revenue expected to be down 3.1% from a year earlier at $37.7 billion and earnings per share down close to 10% at $3.82, according to Zacks Consensus Estimate.
However, over the last four quarters, the company has beaten consensus EPS estimates four times, Zacks pointed out.
Ahead of its results, analysts at RBC Capital Markets kicked off coverage on the company with a ‘Sector Perform’ rating.
The analysts said macro factors such as high interest rates, stubborn inflation and the shift from goods to services could weigh on earnings in the near term — although Home Depot is well-positioned for the longer term.
Home Depot’s shares were marginally higher at $288.07 in early afternoon trade on Friday.
Contact the author at stephen.gunnion@proactiveinvestors.com