People wear protective face masks outside Home Depot in Flatiron District as the city resumes Phase 4 reopening after restrictions were imposed in New York City on Aug. 8, 2020 to slow the spread of the coronavirus.
Noam Galai | Getty Images
Home Depot Fiscal second quarter results are expected to be released before the bell on Tuesday as investors watch how much home hardware store sales have risen through the pandemic.
Here’s what Wall Street expects based on an analyst survey by Refinitiv:
- Adjusted EPS: $ 3.71
- Revenue: $ 34.53 billion
Analysts estimate that sales were up 11.8% year over year as consumers tackled home improvement projects while stuck in the house Coronavirus pandemic. Most states viewed it as a major retailer helping it keep its doors open during the toughest phase of lockdown. The e-commerce business is booming, and roadside collection is now available from most stores.
As the pandemic increases sales for the retailer, it also increases costs. The company reported in the last quarter that higher wages and increased employee sickness benefits cost about $ 640 million.
Investors will also watch how Home Depot’s professional business has performed. Bank of America analyst Elizabeth Suzuki wrote in a research note on Monday that trust in professional clients puts them at a disadvantage compared to their rivals Lowes. About 45% of Home Depot’s sales come from electricians, contractors, and plumbers. While many construction projects stalled in the early days of the pandemic, some projects resumed as economies reopened.
Home Depot suspended its fiscal 2020 outlook in May, citing the uncertainty surrounding the duration of the outbreak and its impact on the overall economy.
The company’s shares, valued at $ 310 billion, are up 32% so far this year.
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