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Home Depot posts earnings jump, raises outlook

Shoppers walk towards a Home Depot store in Silver Spring, Maryland, on March 28, 2013
Shoppers walk towards a Home Depot store in Silver Spring, Maryland, on March 28, 2013

Home-improvement retailer Home Depot reported Tuesday a 42.7 percent rise in fiscal third-quarter earnings and raised its 2013 sales outlook as the US housing recovery continued to boost performance.

Net income rose to $1.4 billion on revenues of $19.5 billion, up from $947 million on revenues of $18.1 billion in the year-earlier period.

Those results translated into per-share earnings of 95 cents, six cents above analyst expectations. Revenues were also better than expected.

"Our third-quarter results reflect the continuing improvement in the housing market and our solid operational performance," said chief executive Frank Blake.

Home Depot raised its full-year sales guidance for the third quarter in a row. It now expects 2013 sales to be up 5.6 percent after previously projecting a rise of 4.5 percent.

It also raised its 2013 earnings per share to $3.72 per share from its second-quarter guidance of $3.60 per share. The new estimate was two cents higher than analyst forecasts.

Shares in Dow member Home Depot soared 2.4 percent to $81.54 in opening trade on the New York Stock Exchange.

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