Atlanta, GA, November 10--Lehman Brothers lowered its fiscal 2005 profit estimate for Home Depot, citing exposure to higher interest rates.
The brokerage firm lowered its profit estimate Home Depot to $2.55 a share from $2.57 a share for the year ending in January 2006. For rival Lowe's, Lehman expects 2005 profit of $3.35 a share.
Home Depot and Lowe's report third-quarter earnings next week. Lehman expects Home Depot to post profit of 56 cents a share, up from 50 cents a year earlier, with a 9 percent rise in sales and a 3 percent rise in sales at stores open at least a year.
For Lowe's, Lehman expects third-quarter profit of 66 cents, up from 56 cents a year ago. Total sales are expected to be up 15 percent as same-store sales rise 3 percent.
Analysts on average expect third-quarter profit of 56 cents a share for Home Depot and 65 cents a share for Lowe's, according to Reuters Estimates.
For fiscal 2005, analysts expect per-share earnings of $2.52 for Home Depot and $3.34 for Lowe's.
