Home Depot (HD: chart) said net income rose to $1.25 billion, or 57 cents a share, vs. 1.1 billion, or 49 cents a share, a year ago. Analysts expected 55 cents a share for the quarter ended May 1.

Home Depot's 1Q sales grew 8.1% to $18.97 billion vs. $17.55 billion. Wall Street expected the company to generate total sales of $19.26 billion.

Home Depot affirmed its expected earnings-per-share growth of between 10% and 14% for the fiscal year ending in January. The outlook is between $2.49 and $2.58 based on the $2.26 a share earned a year ago.

The company also backed its sales growth forecast of between 9% and 12%, targeting a range of between $79.67 billion and $81.87 billion versus $73.09 billion a year ago. Analysts expect Home Depot to earn $2.55 a share on sales of $80.46 billion for the full year.

J.C. Penney Co., Inc. (JCP: chart), a department store operator, Tuesday reported a 46% increase in 1Q profit from continuing operations on the introduction of new brands.

The company earned $172 million, or 63 cents per share, from continuing operations in 1Q ended April 30, up versus $118 million, or 38 cents a share, a year ago.

Net earnings climbed to 63 cents per share versus 13 cents last year.
The company had seen earnings of 61 cents per share. Analysts had forecast 61 cents per share.

Sales at department stores open at least a year advanced 3%. Catalog and Internet sales grew 5.4%. Overall sales climbed 3.9%, generally in line with forecasts.

Penney expects 2Q earnings from continuing operations to be 25 cents to 30 cents per share. Looking ahead, Penney boosted its full-year forecast for earnings from continuing operations to a range of $2.96 to $3.08 per share, up vs. earlier guidance of $2.94 to $3.06.

Steris Corp., a sterilization systems maker, Tuesday reported a sharply lower 4Q profit on higher raw-material costs and growing operating expenses.

Income dropped to $25 million, or 36 cents per share, versus $30.3 million, or 43 cents, in the same quarter a year ago. Earnings came in below the forecast of 42 cents per share from analysts.

Net revenue of $315.7 million was 7% up from $296.1 million a year ago and beat analysts' estimates for revenue of $311.8 million.

Full year earnings declined to $86 million, or $1.23 per share, versus $94.2 million, or $1.33 per share, in 2004. Net revenue totaled $1.12 billion, up 3% vs. $1.09 billion a year earlier. Analysts expected earnings of $1.29 per share on $1.12 billion in revenue.

Steris sees 1Q profit of 24 cents to 26 cents per share, with sales up 7%to 9% to a range of $275 million to $281 million. Yearly income is expected to be between $1.37 to $1.42 per share on revenue of $1.16 billion to $1.22 billion. Analysts forecast 1Q income of 29 cents per share and revenue of $273.5 million, and full-year income of $1.49 per share on $1.18 billion in revenue.

Deere & Co. (DE: chart), the agricultural equipment maker, reported 2Q earnings of $604 million, or $2.43 a share, on revenue of $6.62 billion, up versus $477.3 million, or $1.88 a share, on revenue of $5.88 billion a year ago. Analysts had forecast earnings of $2.13 a share and revenue of $6.05 billion on average.

Deere expects earnings in a range of $450 million to $475 million for 3Q and $1.55 billion to $1.6 billion for the whole year. The company warned that production levels are forecast to decline 7% to 9% in the second half of the year and the lower production rates will most probably hit the year-end trade receivable and inventory levels.

Morningstar Inc. (MORN: chart), independent investment research provider, Tuesday posted 1Q earnings of $4 million, or 9 cents a share, down versus a year-earlier profit of $4.5 million, or 9 cents a share. Revenue climbed 29% in the latest quarter to $53.2 million versus $41.1 million in the same quarter a year ago.

The Chicago-based company said results from its international operations dipped below expectations in the latest quarter. Morningstar also slashed its guidance for 2005 revenue to $124.9 million vs. an earlier target of $129.5 million.

The world's largest office products company Staples Inc. (SPLS: chart) said Tuesday its 1Q jumped almost 27%, helped by growth in the company's delivery business and a smaller gain in North American retail operations.

Net income for the quarter ended April increased to $159.4 million versus $125.7 million in the comparable quarter a year earlier, with sales advancing 13% to $3.9 billion versus $3.45 billion.

These quarterly result topped by a penny the forecast of analysts, who were looking for a profit of 20 cents per share.

Staples expects full year earnings at the high end of its earlier projected range of 15% to 18% higher than a year earlier, flat with analysts' forecast for a full-year profit of $1.09.

Staples shares advanced 4% in morning trading.