Although Lowe's Companies raised its full-year projection and exceeded consensus projections for its Q3 earnings, its premarket activity on Tuesday was relatively muted.

The North Carolina-based home improvement store reported a 1.1% drop in comparable sales for the quarter ending November 2, surpassing the projected decrease of 3.3%. The company linked the decline to lower demand for more significant discretionary purchases among do-it-yourself (DIY) consumers, somewhat offset by storm-related revenues and expansion in professional (Pro) and online divisions.

Driven by high-single-digit positive comps in Pro, significant online sales, and smaller-ticket outdoor DIY projects, our earnings this quarter were modestly better-than-expected even discounting storm-related activity, said CEO Marvin Ellison.

Operating income dropped to 12.6% from 13.2% a year ago; gross margin stayed constant at 33.7% of sales. At $2.89, adjusted profits per share exceeded the consensus value of $2.81. Lowe's paid $654 million in dividends and bought 2.9 million shares for $758 million during the quarter. Moreover, the company projects sales for the entire year between $83 billion and $83.5 billion, less than the $84.2 billion consensus. While adjusted EPS projection was lifted to $11.80-$11.90 from $11.70-$11.90, comparable sales are expected to drop 3.5% to 4%. Analyst expectations of $11.82 match this reduction.

This article first appeared on GuruFocus.