Home Depot (NYSE: HD) reported earnings that were better than expectations on better than expected comp store sales and much higher big ticket pricing. This led to an EPS beat and guidance at the high end of prior ranges. Key data points follow:

A combination of a strong housing backdrop and company specific initiatives, which focus on merchandising and the Pro, are leading to strong sales. This coupled with a healthy pricing environment and strong SG&A controls are leading to good flow through to net income.

Sales ahead of high expectations - US comps +7.3%. Better than expected gross margin and SG&A delivered a $0.04 EPS upside.

Total company comp store sales (+5.1%) beat the Street’s view (+4.6%), driven by +4.4% comp transitions.

Transaction growth was strong with a 4.3% gain.

Overall Ticket grew with a 2.6% gain in local currency but big ticket growth was particularly strong with a 7.8% gain in Q3.

Management issued new FY16 sales guidance (+5.7%) that is toward the high end of the prior range (5.2-6.0%). Total company SSS are expected to come in at 4.9% which should translate to over 6% in the US.

Jefferies analyst, Daniel Binder, believes these results reflect the better backdrop for home improvement, strong capital discipline and the upward EPS revision cycle. He raised his price target to $145 from $142 and maintained his Buy rating.

For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.

Shares of Home Depot closed at $126.18 yesterday.