Home Depot rallies on strong results

The DIY giant reported a 43% jump in third-quarter profit, boosted by the housing recovery.

Shares in Home Depot, the specialist home retailer, have advanced more than 1% today after the company reported better than expected results for its third quarter earlier today.

Home Depot’s rise has been relentless, climbing more than 25% this year and more than doubling in the past two years. The company sells a vast selection of products in the home-improvement arena to both professional consumers and the DIY market and has consequently benefitted from the low interest-rate environment and the flourish housing market that has gone hand-in-hand with the Fed’s loose monetary policy.

Home Depot said today that it earned $135 billion or $0.95 per share in its third quarter, substantially higher than earnings of $0.65 per share in the same period last year. This comfortably surpassed the $0.89 per share that had been expected by Wall Street analysts.

The company also beat estimates for revenue, achieving 7% growth to $19.47 billion versus a consensus estimate of $19.18 billion.

The DIY chain also hiked its full-year forecast for both earnings and sales, saying it now expects sales to increase 5.6% for fiscal 2013, with earnings of $3.72 per share.

Home Depot shares were up 1.05% by mid-afternoon in New York, after earlier hitting an all-time high.

Competitor Lowe's reports tomorrow.

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