By late afternoon, shares had added 3.5% to $80.61. Trading volume of 10.4 million was 44% higher than its three-month daily average.
The DIY home improvement chain recorded quarterly net income of 73 cents a share for the three months to January. Analysts surveyed by Thomson Reuters had forecast 71 cents a share.
Revenue of $17.7 billion was 3% lower than a year earlier and fell short of consensus by $212 million. Excluding the year-ago quarter's extra week, sales climbed 3.9%.
Comparable-store sales increased 4.4%, while U.S. stores jumped 4.9%. The sales increase was on top of an already-high quarter last fiscal year which was buoyed by the recovery efforts of Superstorm Sandy.
Over fiscal 2015, management anticipates sales growth of around 4.8%, assuming full-year revenue of $82.6 billion, and earnings-per-share growth of around 16.5% to $4.38.
The board approved a 21% increase in its quarterly dividend to 47 cents a share, payable on March 27 to shareholders of record on March 13.
Must Watch: Jim Cramer on Home Depot's Results
TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A. The team has this to say about their recommendation:
"We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."