Home Depot 1Q net income up on seasonal items

ATLANTA (AP) - Home Depot's fiscal first-quarter net income surged 41 percent as consumers snatched up seasonal items and the number of customer transactions improved.

The No. 1 U.S. home improvement retailer also raised its 2010 earnings and sales outlooks.

Home Depot of Atlanta earned $725 million, or 43 cents per share, for the period ended May 2.

Adjusted profit was 45 cents per share.

Revenue rose 4.3 percent to $16.86 billion. Revenue at U.S. stores open at least a year climbed 3.3 percent.

Analysts forecast a smaller profit of 40 cents per share on revenue of $16.37 billion.

On Monday rival Lowe's Cos. reported a 2.7 percent increase in its first-quarter net income and lifted its full-year outlook.