2 Retail Earnings Calls To Watch On Tuesday

• Home Depot Inc (NYSE: HD) and Wal-Mart Stores, Inc. (NYSE: WMT) will announce their third-quarter financial results before the market opens on Tuesday.
• Home Depot is expected to deliver a year-over-year increase in earnings of almost 15 percent.
• Wal-Mart is expected to post a 15 percent decline.

Home Depot

According to Estimize, the Street is projecting the home improvement retailer to report earnings of $1.32 per share on revenue of $21.743 billion, while the crowd is modeling consensus earnings of $1.34 per share on revenue of $21.818 billion.

This implies expectations point towards a year-over-year increase of at least 14 percent from the EPS of $1.15 seen a year ago. However, these estimates also mean that both the Street and the crowd are anticipating a quarter-over-quarter decline in earnings from last quarter’s $1.71 per share.

It should also be noted from the chart above that Home Depot has tended to either meet or beat estimates over the past couple of years.

Wal-Mart

Expectations for Wal-Mart are much lower. The company is expected to report its worst quarter in years, in terms of earnings. The Street is modeling consensus earnings of $0.98 per share, one cent below guidance, on revenue of $117.635 billion. The crowd anticipates earnings in line with the Street’s consensus, on sales of $117.622 billion.

These estimates compare to EPS of $1.15 reported a year ago, and EPS of $1.08 registered last quarter. Sales are also expected to fall, from $118.076 billion a year ago and $120.229 billion last quarter.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.