Home Depot Inc (NYSE:HD) today reported Q1 2017 sales were almost 5% higher than the comparable period last year, beating analyst forecasts. Diluted earnings per share increased 16%, according to a company announcement. HD stock was trading up just under 2% in this morning’s pre-market activity.

Sales at the world’s largest home improvement retailer totaled $23.9 billion in the quarter, up 4.9% from last year. Analysts had predicted $23.7 billion. Net earnings for the first quarter of fiscal 2017 were $2 billion, or $1.67 per diluted share, compared with net earnings of $1.8 billion, or $1.44 per diluted share, in the same period of fiscal 2016.  Analysts were expecting $1.61 a share.

Overall comp store sales were up 5.5%, with comp sales for U.S. stores 6% higher. In April, InvestorPlace contributor Lawrence Meyers described HD comps as “anything above 4% is a solid number. In fact, 5.6% approaches ‘great’.”

Atlanta-based Home Depot reaffirmed its fiscal 2017 sales growth guidance and expects sales will be up approximately 4.6% and comp sales will be up approximately 4.6%. HD also raised its diluted earnings-per-share growth guidance for the year and now expects diluted earnings-per-share growth after anticipated share repurchases of approximately 11% from fiscal 2016 to $7.15.

As InvestorPlace contributor Luke Lango noted earlier this week, the home-building space is on fire right now. According to the U.S. Census Bureau’s Advance Monthly Sales numbers, building material stores have been the third-fastest growing retail sector so far this year (behind gas stations and non-store retailers). February through April, building material store sales are up 7.1%.

“It is worth noting that the same data showed that department store sales have fallen 4.5% in the same time frame,” Lango wrote. “That bearish data lined up pretty well with bad earnings reports from the department store giants. I have confidence that the bullish macro data will line up with a good report from Home Depot.”

HD stock has gained more than 17% this year, including 7.8% in the last month.