Log In | Register
CHICAGO — The Home Depot Inc. reports its results for the first quarter Tuesday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Like the rest of the home improvement industry, the Atlanta-based retailer has suffered as consumers cut back on big-ticket purchases amid the recession. But as temperatures climb, it is seeing bigger interest in its lawn-and-garden business and do-it-yourself projects as consumers shift their spending to smaller ticket items.
During the first quarter, privately held HD Supply said it would receive a $22 million payment from Home Depot for adjustments related to its August 2007 sale. Home Depot sold HD Supply, a wholesale distribution company, to Bain Capital, Carlyle Group and Clayton, Dubilier and Rice for $8.5 billion in 2007 but kept a 12.5 percent equity stake in the business.
The deal between the two companies also includes other non-cash considerations.
BY THE NUMBERS: Analysts polled by Thomson Reuters predict a profit of 28 cents per share on revenue of $15.84 billion for the quarter.
ANALYST TAKE: Barclay's analyst Michael Lasser told investors that he expects the home improvement chain's sales fell about 12 percent to about $15.8 billion while same-store sales — an important retail industry metric that measures sales in stores open at least a year — also slid 12 percent.
"We expect that sales trends remained soft but likely stabilized during the quarter due to performance of seasonal items and products relating to smaller DIY projects," he wrote in a recent research note.
WHAT'S AHEAD: Analysts will be looking for any comments executives have about the state of the U.S. housing market and when the nation's economy may recover.
STOCK PERFORMANCE: During the quarter, which ended May 3, shares rose about 16 percent to end the period at $25.77.
