Severe winter gives way to hot spring for Home Depot

CNBC With Reuters
Analyst says Home Depot 'a top retail pick'
Analyst says Home Depot 'a top retail pick'

Home Depot, the world's largest home improvement chain, reported a 5.7 percent rise in quarterly sales as customers spent more on home repairs after a severe North American winter.

Home Depot's net income rose to $2.05 billion, or $1.52 per share, in the second quarter ended Aug. 3 from $1.79 billion, or $1.24 per share, a year earlier.

Following the report, shares of Home Depot rose in premarket trading. (Click here for the latest quote.)

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Revenue increased to $23.81 billion from $22.52 billion a year ago.

Wall Street had expected the retailer to deliver second-quarter earnings of $1.45 a share on $23.61 billion in revenue, according to a consensus estimate from Thomson Reuters.

Home improvement retailers the exception
Home improvement retailers the exception

The company also raised its 2014 earnings per share guidance to $4.52, from its previous guidance of around $4.42 a share. It also continues to see full-year sales up about 4.8 percent.

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Same-store sales for the second quarter rose 5.8 percent, while same-store sales for U.S. stores increased 6.4 percent.

The retailer was forecast to report a 4.40 percent rise in same-store sales, according to a consensus estimate from Consensus Metrix.

Cramer's new thesis good for retail
Cramer's new thesis good for retail

"In the second quarter, our spring seasonal business rebounded, and we saw strong performance in the core of the store and across all of our geographies," said Frank Blake, chairman and CEO, said in a statement.

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The specialty retailer's shares hit an all-time high Monday after Credit Suisse said investors should buy the stock following a strong spring home retail season.

During the past year, the company's stock has gained about 11 percent, but underperformed the S&P 500 index, which rose about 19 percent over the same period.

Rival Lowe's is scheduled to report earnings on Wednesday.

—By CNBC. Reuters contributed to this report.