Home Depot to report Q1 earnings Tuesday, while Lowe’s reports next week
Home improvement retailers Home Depot (HD) and Lowe’s (LOW) are scheduled to report results of their first quarters before the market open on Tuesday, May 16, and Tuesday, May 23, respectively. Home Depot’s conference call is scheduled for 9:00 am EDT on Tuesday and Lowe’s will hold its quarterly call next Tuesday at 9:00 am EDT. What to watch for:
HOUSING MARKET COMMENTARY:
Builders remained cautiously optimistic in April as limited resale inventory helped to increase demand in the new home market even as the industry continues to grapple with building material issues. Builder confidence in the market for newly built single-family homes in April rose one point to 45, according to the National Association of Home Builders/Wells Fargo Housing Market Index released on April 17. “For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates,” said NAHB Chairman Alicia Huey.
‘LACKLUSTER’ START:
Baird reduced U.S. comp estimates to reflect its seasonal checks and the sequential deceleration in demand indicators. While last year was seasonally soft as well, channel checks checks point to another lackluster start for outdoor seasonal categories, the analyst tells investors in a research note. However, Baird believes seasonal sales in May “are off to a hot start.”
TACTICAL UNDERPERFORM:
Evercore ISI initiated a negative tactical trading call on Lowe’s and added the stock to the firm’s “Tactical Underperform” list ahead of the company’s Q1 earnings report. The firm, which thinks Lowe’s can “generally make” Q1 comps of down 3%, believes the company’s guidance for an acceleration in Q2 “remains optimistic” and it notes that the firm’s full year estimates for both Home Depot and Lowe’s are below guidance and consensus.
SENTIMENT:
Check out recent Media Buzz Sentiment for Home Depot and Lowe’s as measured by TipRanks.
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Originally Posted May 15, 2023 – Here’s what Wall Street is saying about Home Depot, Lowe’s ahead of earnings
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