Home Depot reports better-than-expected sales in Q3

The biggest DIY outfit in the United States, Home Depot, has published its third quarter results for 2016, showing profits and sales which were better than expected by analysts.

Rising demand for new homes in the US has contributed to the company's strong performance in the quarter, leading to Home Depot raising its yearly forecast for earnings per share.

Shares in the company rose 2.7% to $131.09 in early trading on Tuesday.

Sales at established stores rose 5.5% during the three-month period in comparison with the same quarter last year. Analysts had expected the figure to be closer to 4.4%.

Net sales also rose more than expected to 6.1% to $23.15bn. Earnings rose to $1.97bn, or $1.60 a share, ahead of predictions for $1.58.

Home Depot CEO Craig Menear praised the work of his employees in the face of adverse meteorological conditions during the quarter.

"We experienced balanced sales growth in the quarter driven by an increase in both ticket and transactions, and our continued focus on productivity drove double-digit earnings-per-share growth," said Menear, chairman, CEO and president.

"I would like to thank our associates and suppliers for their hard work and dedication to our customers throughout the quarter, and particularly in the face of Hurricane Matthew and the flooding in Louisiana."

Atlanta, Georgia-based Home Depot also reaffirmed its guidance for fiscal 2016 sales, saying it expected them to be roughly 6.3% higher on the previous year, with comparable store sales up by roughly 4.9%.

Full-year EPS on the other hand was now seen up by 15.9% to $6.33.