The company's shares were up 3 percent in premarket trading.

Lowe's sales have been recovering after a severe winter earlier this year hit demand for outdoor products such as roofing and tiling material.

U.S. homebuilder sentiments have improved in the past three months as the job market firmed up, according to the National Association of Home Builders.

Lowe's raised its profit forecast to $2.68 per share from $2.63. The company also said it expects sales to grow 4.5-5 percent for the year ending Jan. 30, 2015, which translates to sales of $55.82 billion-$56.09 billion.

It had previously forecast sales growth of 4.5 percent.

Analysts on average were expecting a full-year profit of $2.63 per share and sales of $55.78 billion, according to Thomson Reuters I/B/E/S.

The company also raised its same-store sales growth forecast to 3.5-4 percent from 3.5 percent.

Same-store sales increased 5.1 percent in the third quarter ended Oct. 31 - higher than the 4 percent analysts expected, according to research firm Consensus Metrix.

The company's net income jumped 17 percent to $585 million, or 59 cents per share. Revenue increased 5.6 percent to $13.68 billion.

Analysts had expected a profit of 58 cents per share on revenue of $13.55 billion.