Reuters – Home Depot, the largest US home improvement chain, beat analysts’ third-quarter sales and profit estimates on Tuesday, as hurricanes Harvey and Irma boosted demand for storm-related emergency products and rebuilding materials.
The Dow component’s shares, already up 23% this year, were 2.2% higher in pre-market trading.
Sales at stores open for more than a year rose 7.9%, above the average analyst estimate of 5.9%, according to Thomson Reuters.
Comparable sales at US stores increased 7.7%, above the average analyst estimate of 6%.
Home Depot said hurricane-related sales added about $282m to comparable sales.
Home improvement retailers benefit from the sale of emergency storm-related merchandise such as generators, batteries and flashlights during hurricanes as well as from demand for rebuilding materials in the aftermath.
Home Depot’s net income rose to $2.17bn, or $1.84 per share, in the third quarter ended October 29, from $1.97bn, or $1.60 per share, a year earlier.
Net sales rose 8% to $25.03bn.
Analysts on average had expected earnings of $1.82 per share and revenue of $24.55bn, according to Thomson Reuters.