NEW YORK (TheStreet) -- Shares of Home Depot Inc. (HD) are up 3.48% to $86.50 in pre-market trade after the home improvement retailer reported second quarter profit that beat analysts' estimates and raised its forecast for the year as sales of seasonal merchandise rebounded, Bloomberg reports.
Net income in the three months through August 3 gained 14% to $2.05 billion, or $1.52 per share, from $1.8 billion, or $1.24, a year ago.
The average of 25 analysts' estimates compiled by Bloomberg was $1.44.
Second quarter revenue was up 5.7%t to $23.8 billion, beating analysts' average estimate of $23.6 billion, helped by improved weather and rising home prices that are spurring consumers to spend on renovations, Bloomberg noted.
Home Depot said profit this year will be $4.52 a share, including the benefit of share repurchases; the company had forecast $4.42.
For more on Home Depot's quarterly results, watch the video below:
TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A+. TheStreet Ratings 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, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: HD Ratings Report
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