Factors Likely to Influence Home Depot’s (HD) Q1 Earnings – Get our quote in 5 minutes

Home Depot, Inc. HD is expected to report its first fiscal 2020 results on May 19, before the opening bell. In the final four quarters, the company's earnings averaged Zacks' consensus estimate of 4.1% on average. The consensus estimate for the first quarter fiscal earnings of $ 2.24 per share suggests a 1.3% drop from the figure reported in the prior year period. However, the consensus estimate has increased by one cent in the past seven days. The consensus sign for revenues is anchored at $ 27.23 billion, indicating a 3.24% increase over the figure reported in the quarter of last year. Key Factors to NoteHome Depot has a solid earnings record, supported by ongoing strategies – including the integrated retail strategy and solid execution. His efforts to connect offline and online channels as well as investments in front-end stores to optimize the productivity of the workspace and merchandise have helped customer satisfaction scores and conversion rates in stores.
The Home Depot Inc Price and EPS Surprise

The Home Depot Inc price-eps-surprise | The quote from Home Depot Inc
In addition, the company's efforts to improve the website and other applications, along with investments in automatic lockers, are likely to have worked in its favor. In addition, strength in the Pro sector has been a key factor in the growth of Home Depot. In the wake of the coronavirus epidemic, the company has implemented opening hours and modified rules for the safety of customers and employees. Its stores in the U.S. and Canada are open until 18:00. every day, providing time for sanitization and restocking. In addition, it limited the number of customers in stores at a given time and implemented social and physical distancing through marked plans. In addition, the company eliminated spring promotions in an attempt to avoid heavy traffic in stores. Home Depot also provided thermometers for store employees and those working in distribution centers. It has reduced installation and other related services, except for those related to maintenance and repairs. We believe that these efforts and the moderate traffic due to orders to stay at home during the coronavirus epidemic probably influenced the company's performance in the quarter to report in some way. In addition, incremental security measures to safeguard employees and customers are likely to have resulted in additional costs for the company. This should be reflected in the quarterly results. Overall, the company has witnessed higher supply chain costs, associated with the start-up costs of the "One Home Depot" supply chain initiative, which should have damaged its margin. A greater contraction and an unfavorable mix of products sold also damaged the gross margin. Zacks model Our tried and tested model does not definitively provide a profit for Home Depot this time. The combination of a positive earnings ESP and a Zacks Rank # 1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of a profit streak. But this is not the case here. You can discover the best stocks to buy or sell before they are reported with our ESP revenue filter. The domestic warehouse has a Zacks level no. 3 but has an ESP on earnings of -2.51%. Stocks with favorable combinations Here are some companies you may want to consider, since our model shows that these have the right combination of elements to publish a profit: GameStop Corp GME currently has an ESP on profits of + 56.70 % and a Zacks Rank # 2. You can see the complete list of Zacks' stocks n. 1 today. Kroger Co KR currently has an ESP on profits of + 8.48% and a Zacks of rank n. 2 at the moment. DG General Corporation currently has an ESP on earnings of + 1.25% and a Zacks in third place. The trendiest mega-tech trend of all last year has generated $ 24 billion in global revenue. By 2020, it is expected to explode up to $ 77.6 billion. Famous investor Mark Cuban says it will produce "the first trillion players in the world", but that it should still leave a lot of money to regular investors who do the right deals ahead of time. See the top 3 Zacks titles to play this trend >>
Click to get this free report
The Home Depot Inc (HD): free share analysis report
To read this article on Zacks.com click here.
Zacks Investment Research

The views and opinions expressed in this document are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.