The top U.S. home improvement retailer's shares, up 18% this year, rose 2% in premarket trading as it posted a smaller-than-expected drop in third-quarter comparable sales.

Strom damage across the Southeast accounted for higher sales to contractors, and the chain also forecast stronger results as mortgage rates drop.

Home Depot shares had fallen by midday Tuesday after its third-quarter results came in above estimates and the retailer also lifted fiscal 2024 sales projections.

The home-improvement retailer said sales came in higher than expected in the third quarter as weather around the country normalized and as demand rose for certain home projects.

Home Depot forecast a smaller drop in annual same-store sales on Tuesday, benefiting from resilient demand from professional contractors, as well as a lift from hurricane-related spending. Shares of the top U.

Home Depot said earnings for the three months ending in October were pegged at $3.78 per share, down 1.8% from the same period last year but 13 cents ahead of the Wall Street cons

Home Depot (HD) reports strong Q3 earnings with revenue rising 6.6% year-over-year. Adjusted EPS exceeds consensus expectations.