Lowe's Cos Inc posted a higher-than-expected quarterly profit on Monday and raised its forecast for the year, sending its shares up 11.1 percent in premarket trade.

In recent weeks, we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets and home prices slow their decline, Chief Executive Robert Niblock said in a statement.

He added that though these are positive signs, many economic indicators remain near historic lows, and Lowe's will continue to be conservative with its plans.

Lowe's net profit fell to $476 million, or 32 cents a share, for the first quarter ended May 1 from $607 million or 41 cents a share, a year earlier.

Analysts, on average, had expected a profit of 25 cents per share, according to Reuters Estimates.

Sales at the second-largest home improvement retailer fell 1.5 percent to $11.83 billion.

For the full year ending January 29, Lowe's said it now expects to earn $1.13 per share to $1.25 per share. It had previously expected earnings of $1.04 per share to $1.20 per share.

Analysts have looked for Lowe's to earn $1.11 per share.

It also expects to earn 51 to 55 cents per share for the second quarter ending July 31 on a sales decline of 2 percent to an increase of 1 percent.

Its shares rose to $20.50 before markets opened from Friday's close of $18.45 on the New York Stock Exchange.

(Reporting by Aarthi Sivaraman; Editing by Lisa Von Ahn and Gerald E. McCormick)