Home Depot Earnings Preview: What to Watch

As the housing sector recovers and home remodeling surges, Wall Street is looking for big things out of Home Depot.

The company reports its fourth quarter results Tuesday, with consensus estimates suggesting a profit of 64 cents a share, according to Thomson Reuters. That would be up from 50 cents a share in the same quarter one year ago.

Estimates have actually been rising for the home improvement retailer, as Home Depot had seen a rise in revenue over the last two quarters. Revenue for the fourth quarter is expected to rise just over 10% from a year ago to $17.698 billion. For the full year analysts are projecting revenue at $74.20 billion.

Home remodeling retailers have seen an uptick in sales not just because of the housing recovery but because of the results of the housing crash. Investors have been buying distressed properties at a fast pace and then renovating them to turn around as rentals. (Track Home Depot Stock and News Here)

(Read More: What Tops Home Buyers' Wish List Now)

—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

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