The Home Depot (HD) has reported third-quarter financial results that beat Wall Street forecasts on the top and bottom lines.
The Atlanta, Georgia-based retailer announced earnings per share (EPS) of $3.67 U.S., which was better than the $3.64 U.S. expected amongst analysts.
Revenue in the quarter totaled $40.22 billion U.S., which topped estimates of $39.32 billion U.S. Sales at the home improvement retailer rose 6% from a year earlier.
Management said that hurricane-related repairs and better weather in many parts of the U.S. boosted demand for home improvement supplies at its retail locations.
Shoppers visited Home Depot’s stores and shopped online about as much as they did a year ago. On average, customers spent $88.65 U.S. per visit to the company’s stores and website.
Home Depot has gotten hit by economic factors in recent years such as high interest rates, a slow housing market, and high inflation that have led homeowners to put off upgrades and do-it-yourself projects.
However, there are signs that those pressures are starting to ease. The company raised its full-year outlook to reflect its better-than-expected results and improving outlook.
Home Depot now expects total sales this year to increase 4%, up from a previous estimate of 2.5% to 3.5% growth for the year.
The forecast includes an expected lift from a $6.4 billion U.S. contribution from SRS Distribution, which sells supplies to professionals in the roofing, landscaping and pool businesses.
Home Depot acquired SRS Distribution earlier this year for $18.25 billion U.S., the largest acquisition in its history.
Home Depot continues to chase business from contractors, roofers, and professional construction companies to drive sales.
The stock of Home Depot has increased 18% this year to trade at $408.29 U.S. per share.
