Spurred by Growing Property Market, Home Depot Raises Earnings Forecasts

Shares of Home Depot Inc. rose 1.6% to $129.65 in premarket trading after the Atlanta-based company reported rising sales in the third quarter on Tuesday.

Home Depot posted a profit of $2 billion, or $1.60 a share, up from $1.73 billion, or $1.35, one year ago. In three months through September, sales at stores open at least a year advanced 5.5%, contributing to a continual increase in revenue which was reported to add 6.1% to $23.15 billion.

All results beat expectations thanks to a growing housing market in the U.S. and the fact that Americans become increasingly willing to spend on home-improvement projects.

For the full year 2016, the company forecasts earnings per share of $6.33, up 2 cents compared to its previous guidance. Sales are expected to increase 6.3%.

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