US DIY retailer Home Depot (NYSE:HD) shares are 1% higher before the bell on Tuesday after reporting forecast-beating third-quarter earnings overnight, which led the store chain to reaffirm its full-year sales guidance - and raise its 2016 earnings per share forecast.
Both sales and earnings topped analysts' expectations, driven by an increase in both the number of people who made purchases in its stores and the amount that shoppers spent.
Home Depot recorded sales of $23.2bn in its fiscal third quarter, and earned $1.60 a share, diluted. Analysts had expected the retailer to report earnings of $1.58 a share on $23.05bn in revenue, according to a consensus estimate from Thomson Reuters. That compares with earnings of $1.36 per share and $21.82bn in sales during the prior-year period.
Same-store sales rose 5.5%, easily topping Wall Street's estimate for a 4.4% increase, according to FactSet. In the US, comparable sales were up 5.9%.
The company reiterated that it expects the year's sales to increase roughly 6.3%, with comparable sales rising 4.9%. It raised its earnings per share guidance to $6.33, adjusted, from the previous $6.31 a share.
Home improvement retailers have largely managed to buck the challenges facing the broader retail industry, as rising home values and a steadier economy have encouraged consumers to invest in their homes.
Home Depot shares were up 1% at $128.90.