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.

Home Depot's sales have gotten hit by economic factors, as higher interest rates slow housing turnover and more than two years of high inflation makes homeowners less willing to spring for discretionary purchases and do-it-yourself projects. The company had cut its full-year forecast for comparable sales in August, citing consumer uncertainty.

Home Depot reported decent revenue growth for Q3 thanks, in part, to hurricane activity, but it experienced a decline in net earnings.

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 rose Tuesday morning after its third-quarter results came in above estimates and the retailer also lifted fiscal 2024 sales projections.

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