A customer wears a protective mask as he unloads purchases from a shopping cart outside a Home Depot Inc. store in Reston, Virginia on Thursday, May 21, 2020.
Andew Harrer | Bloomberg | Getty Images
Home Depot is expected to post third quarter profits on the Tuesday before the market opens as the retailer sees a surge in purchases across the home improvement sector due to the pandemic.
With people spending more time at home and some leaving cities to find spacious homes in the suburbs during the pandemic, Home Depot and its rivals Lionhave seen an increase in sales. It started in the spring when both were viewed as important stores as other retailers had closed, and it continued into the summer when people traveled less and tackled more projects at home. Analysts will be watching to see if the company was able to maintain momentum in the fall.
Based on an analyst survey by Refinitiv, Wall Street expected the following for the third quarter of fiscal year:
- EPS: USD 3.06 expected
- Revenue: $ 32.04 billion expected
Home Depot announced on Monday that it had agreed to acquire the remaining shares in HD supply, a former entity and one of the largest industrial products distributors in North America, valued at $ 8 billion. Home Depot spun HD Supply to a group of private equity firms in 2007 including Carlyle Group, Bain Capital and Clayton, Dubilier & Rice.
The deal could help Home Depot consolidate its lead in the professional contractor business. Lowe’s has tried to grab a bigger share of that side of the business, but Home Depot remains dominant. In addition to do-it-yourself projects, the specialist market also boomed during the pandemic.
Lowe’s will report its third quarter results before the market opens on Wednesday.
At the close of trading on Monday, Home Depot shares were up 28% since January 1. With a market value of nearly $ 301 billion, the stock hit an all-time high of $ 292.95 on August 27.
– CNBCs Melissa Repko contributed to this report.
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