The nation's biggest home improvement retailer stuck to its outlook for all of 2014, but said it could not account for all possible losses from a data breach it revealed in September that affected 56 million debit and credit cards.
For the three months ended Nov. 2, Home Depot earned $1.54 billion, or $1.15 per share. That compares with $1.35 billion, or 95 cents, a year earlier.
The housing sector had been hit hard early in the year by both bad weather and tight conditions in the market due to rising mortgage rates and a tight supply of homes.
That dragged down the earnings of home improvement retailers, yet Home Depot appears to be distancing itself from those early rough months, beating Wall Street's per-share expectations by a couple of cents, according to a poll of analysts by Zacks Investment Research.
Revenue for the Atlanta company climbed 5% to $20.52 billion. That also beat the $20.42 billion in revenue that analysts had expected.
Sales at stores open at least a year rose 5.2%. In the U.S., those sales increased 5.8%.
Same-store sales are a key gauge for investors because they exclude volatility from recently opened or closed locations, and provide a better look at a retailer's core health.
Michael Lasser of UBS said comparable-store sales were relatively consistent month to month, suggesting that the data breach didn't have much of an effect.
Home Depot maintained its forecast for fiscal 2014 earnings of about $4.54 per share. It still expects sales to climb about 4.8%.
Home Depot said that going forward, costs related to its data breach may include liabilities to payment card networks for reimbursements of credit card fraud and card reissuance costs; liabilities from current and future civil litigation, governmental investigations and enforcement proceedings and other potential costs.
Those costs may have a material adverse effect on its fourth-quarter results, as well as on future periods, the company said.