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.

Strom damage across the Southeast accounted for higher sales to contractors, and the chain also forecast stronger results as mortgage rates drop.

Shares of Home Depot (HD) tick higher in Tuesday's pre-market trading after the company posted an earnings beat in the third quarter and raised its guidance for the full year. Home Depot saw $40.2 billion in sales in the quarter,

The home-improvement retailer said sales came in higher than expected in the third quarter as weather around the country normalized and as demand rose for certain home projects.

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 raises outlook on home-improvement materials, partially driven by damage caused by Hurricanes. The company expects future benefits from hurricane-related repairs, but not big ticket remodeling,