Home Depot earnings beat Wall St. estimates

Home Depot (HD) reported earnings that beat Wall Street expectations Tuesday and raised its guidance outlook for the year.

The home improvement retailer earned $1.6 billion, or $1.21 per diluted share, compared with net earnings of $1.4 billion, or $1.00 per diluted share, in the same period of fiscal 2014

Excluding a benefit of $71 million from the settlement of a tax audit, Home Depot earned $1.16 a share.

Sales rose 6.1% to $20.89 billion.

Wall Street analysts were expecting $1.15 a share on $20.81 billion in sales, according to Thomson Reuters I/B/E/S.

Sales at U.S. stores open at least year were up 7.1% from the same-period last year.

"We had a stronger than expected start to the year as we experienced a more normal spring across much of the country and continued recovery of the U.S. housing market," said Home Depot CEO Craig Menear.

The retailer said it expects earnings of $5.24 to $5.27 a share for the year. That is up from its earlier forecast of $5.11 to $5.17 a share.

Shares were up 0.8% to $115.29 in pre-market trading.