Home Depot lifts outlook as 3Q profit beats

Dow component Home Depot reported a 3Q profit of $2.87 billion, or $2.51 per share, beating the Wall St estimate of $2.26. Revenue was $26.3 billion.

The revenue estimate was for $26.26 billion.

Sales at U.S. stores open for more than a year rose 5.4 percent, topping expectations of 4.38 percent.

Home Depot said it now expects full-year sales to increase by about 7.2%. It also expects that for the comparable 52-week period that same-store sales will increase by about 5.5%.

The 2018 fiscal year has 53 weeks. The company also said it now expects profit for the year to be $9.75 a share.

Shares are trading higher by 2.5 percent in the premarket.

In the year ago quarter, the home improvement retailer reported earnings of $2.17 billion, or $1.87 per share on revenue of $25.03 billion.

In this year’s second quarter,  Home Depot reported  profit of $3.05 per share, topping analysts' estimate for $2.84 as the home improvement retailer benefited from a strong economy and increased consumer spending.

2Q revenue was $30.5 billion, beating Wall Street's expectation for $30.02 billion.