In this photo taken Monday, July 13, 2015, Vicente Aguiar loads garage door trims into his pickup truck outside a Home Depot in Hialeah, Fla. Home Depot reports quarterly financial results on Tuesday, Aug. 18, 2015.

Associated Press (The Associated Press)

Home Depot Sales and Revenue Rise as Customers Spend More Per Transaction

Earnings Dow Jones Newswires

Home Depot Inc. on Tuesday posted sales and profit growth on more as well as higher-priced transactions.

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Shares, which have fallen 6.9% over the past three months, rose 1.7% to $129.79 in premarket trading.

For 2016, the company now projects earnings of $6.33, adding two cents to its previous guidance. It continues to expect sales to increase 6.3%.

The Atlanta-based company has continued to report rising sales as the housing market grows and Americans become increasingly willing to spend on home-improvement projects. Superlow mortgage rates have kept higher prices within reach of many borrowers and prices have shot up in many U.S. housing markets over the past couple of years. But Donald Trump's victory has led to a surge in bond yields and, in turn, mortgage rates, potentially impacting housing prices.

During the most recent quarter, sales at Home Depot stores open at least a year grew 5.5% as same-store sales for U.S. stores grew 5.9%.

In all for the second quarter, Home Depot reported a profit of $2 billion, or $1.60 a share, up from $1.73 billion, or $1.35, a year prior. Revenue climbed 6.1% to $23.15 billion.

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Analysts polled by Thomson Reuters had projected earnings of $1.58 a share on $23.04 billion in sales.

At the quarter's end, Home Depot operated 2,276 retail stores in all 50 states, Canada and Mexico. The company's sales per square foot rose 4.3% as the amount the average customer spent rose 3%.

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