Blake's statement signaled a "stronger tone" on the housing market than in prior quarters, said NBG Productions analyst Brian S. Sozzi, who called the remarks encouraging.
It remains to be seen whether Home Depot's smaller rival Lowe's Cos. will echo the sentiment in reports expected on Monday.
For the period ended Oct. 28, Home Depot Inc. reported net income of $947 million, or 63 cents per share. That's up from $934 billion, or 60 cents per share, a year earlier.
Excluding a charge for closing some stores in China, earnings were 74 cents per share.
During the quarter, Home Depot said it would close its big-box stores in China after failing to make a dent in the market.
"After several years of effort, we concluded that we could not make our big box retail model profitable there," Blake said.
That topped the 70 cents per share that analysts surveyed by FactSet predicted.
Revenue rose more than 4 percent to $18.13 billion. Wall Street expected $17.92 billion.
For the year, Home Depot now expects net income of $3.03 excluding the costs of closing stores in China, reflecting share repurchases. It previously forecast $2.95 per share.
It anticipates revenue will climb about 5.2 percent. Based on 2011's revenue of $70.4 billion, this implies $74.06 billion. Home Depot's prior forecast was for a 4.6 percent increase, which implied revenue of $73.63 billion.
Analysts expect earnings of $2.99 per share on revenue of $73.68 billion.
Shares rose $2.22, or 3.6 percent, to close at $63.38 Tuesday after rising to a new high for the year of $64.44 earlier in the session.