Home Depot Inc. raised its outlook for the second time this year as it reported better-than-expected second-quarter results.
Shares jumped 2.3% to $157.80 during premarket trading and have gained 15% so far this year.
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The home-improvement retailer now sees annual sales growing 5.3%, led by 5.5% same-store sales growth, up from prior guidance of 4.6% growth, and expects earnings per share to jump 13% compared with an 11% increase forecast earlier.
The Atlanta-based company has reported rising sales as the housing market grows and Americans become increasingly willing to spend on home-improvement projects. Low mortgage rates have kept higher prices within reach of many borrowers and prices have increased in many U.S. housing markets over the past couple of years.
During the most recent quarter, sales at Home Depot stores open at least a year grew 6.3%, led by 6.6% growth in the U.S. Analysts polled by Consensus Metrix were expecting 5.4% growth in the U.S. and 4.9% same-store sales growth over all.
In all for the three months ended July 30, Home Depot earned $2.67 billion, or $2.25 per share, up from $2.44 billion, or $1.97 per share a year earlier. Sales increased 6.2% to $28.12 billion.
Analysts polled by Thomson Reuters had forecast earnings of $2.22 per share on $27.84 billion in sales.
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(END) Dow Jones Newswires
August 15, 2017 06:51 ET (10:51 GMT)