Home Depot Reports Higher Income, Sales

Atlanta, GA, Nov. 16, 2010 -- Home Depot reported third quarter net income rose to $834 million, or 51 cents a share, in the third quarter ended Oct. 31, from $689 million, or 41 cents a share, a year earlier.

Sales rose 1.4% to $16.60 billion, slightly above the analysts' average estimate of $16.59 billion. Sales at U.S. stores open at least a year rose 1.5%.

The results were better than expected, mostly due to tighter cost controls, and the company raised its profit outlook for the year.

However, Home Depot reduced its full-year sales projections as U.S. consumers continue to put off expensive renovations and focus on repairs and small remodeling projects.

Home Depot, which has benefited from a slower expansion strategy, supply chain improvements and cost cuts that included job reductions in January, said it would continue to invest in its efforts to improve its merchandise and distribution.

Analysts were expecting earnings of $0.48 cents a share.

Home Depot forecast earnings of $1.94 a share from continuing operations for the current fiscal year, up $0.04 from its prior outlook.