Is Home Depot Poised to Beat the Whisper Number?
Home Depot (NYSE:HD) is expected to report earnings on Tuesday, February 25. The whisper number is $0.71, in-line with the analysts’ estimate. Home Depot has a 70 percent positive surprise history, having topped the whisper in 39 of the 56 earnings reports for which we have data.
- Beat whisper: 39 qtrs
- Met whisper: 3 qtrs
- Missed whisper: 14 qtrs
Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.
The table below indicates the average ice movement within a one and thirty trading day timeframe.
The strongest price movement of -0.9 percent comes within thirty trading days when the company reports earnings that beat the whisper number, and +2.1 percent within twenty trading days when the company reports earnings that miss the whisper number. Although the strongest price moves are opposite, the overall average price move is ‘negative’ (beat the whisper number and see weakness, miss and see weakness) when the company reports earnings.