Home Depot raises 2010 outlook on stronger sales

NEW YORK (AP) — Home Depot Inc. today raised its fiscal 2010 earnings guidance for the second time in two months as Americans slowly begin to take on more home-improvement projects.

"November was a terrific selling month for us," CFO Carol Tome said in an interview, with better-than-expected revenue across the store.

Home-improvement retailers have faced weak revenue as consumers hold back on major renovations because of the uncertain housing market and high unemployment.

But there are positive signs: Last week, an index compiled by the National Association of Realtors showed a third straight monthly increase in signed contracts for home purchases.

The No. 1 U.S. home-improvement retailer now expects net income from continuing operations to be $1.97 per share. That's up from prior guidance of $1.94 per share. Analysts polled by Thomson Reuters, on average, also predict $1.94 per share.