Home Depot gains on housing recovery

Home improvement retailer Home Depot boosted its forecast for the year Tuesday, crediting the recovery in the housing sector for a 17.2 percent jump in quarterly profits. Net earnings for the second quarter ended August 4 came in at $1.8 billion on revenues of $22.5 billion, up from $1.5 billion on revenues of $20.6 billion a year ago. The results translated into per-share profits of $1.24, three cents above analyst forecasts. "The second quarter results exceeded our expectations as our business benefitted from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the US," said Frank Blake, Home Depot chairman and chief executive. The results included a 10.7 percent gain in comparable store sales. Home Depot raised its full-year profit forecast by 8 cents to $3.60 per share. The company now expects overall sales to grow 4.5 percent, compared to the prior forecast of a 2.8 percent rise. Home Depot's results were a bright spot in the US retailing industry after reports from Walmart, Macy's and others last weak disappointed. Home Depot shares were up 2.1 percent to $76.75 in opening trade.