Free Post Earnings Research Report: HD Supply’s Sales Grew 7.5%; EPS Soared 707%

LONDON, UK / ACCESSWIRE / January 04, 2018 / Active-Investors.com has just released a free earnings report on HD Supply Holdings, Inc. (NASDAQ: HDS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HDS. HD Supply reported its third quarter fiscal 2017 operating results on December 05, 2017. One of the largest industrial distributors in North America outperformed top- and bottom-line expectations and also raised its guidance. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, HD Supply most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

HD Supply’s net sales of $1.37 billion for the third quarter of fiscal 2017 ended October 29, 2017, up 7.5% compared to Q3 2016 sales of $1.28 billion. The Company’s sales topped analysts’ expectations of $1.34 billion.

For Q3 2017, HD Supply’s gross profit jumped 5.9% to $542 million compared to $512 million for Q3 2016. The Company’s gross profit was 39.6% of net sales for the reported quarter, down approximately 60 basis points from 40.2% of net sales for the year-earlier corresponding quarter.

During Q3 2017, HD Supply’s operating income advanced 14.5%, to $182 million compared to $159 million for Q3 2016. The Company’s operating income as a percentage of net sales was 13.3% for the reported quarter, reflecting an increase of approximately 80 basis points from 12.5% for the year-earlier same quarter.

HD Supply’s net income soared 653% to $452 million for Q3 2017 compared to $60 million for Q3 2016. The Company’s growth in net income was primarily due to the gain on the sale of HD Supply’s Waterworks business. HD Supply’s net income per diluted share rocketed 707% for the reported to $2.42 compared to $0.30 for Q3 2016.

HD Supply’s adjusted net income soared 58.5% to $149 million for Q3 2017 compared to $94 million for Q3 2016. The Company’s adjusted net income per diluted share soared 70.2% to $0.80 for the year-earlier same quarter of $0.47, and came in ahead of Wall Street’s estimates of $0.75 per share.

HD Supply’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 13.8% to $214 million for Q3 2017 compared to $188 million for Q3 2016. The Company’s adjusted EBITDA as a percentage of net sales was 15.6% for the reported quarter, increasing approximately 90 basis points from 14.7% on a y-o-y basis.

HD Supply Holdings’ Segment Results

During Q3 2017, the Facilities Maintenance segment’s net sales grew 4.1% to $754 million compared to $724 million for Q3 2016. The segment’s adjusted EBITDA jumped 9.3% to $153 million for the reported quarter compared to $140 million for the prior year’s same quarter. The segment’s adjusted EBITDA as a percentage of net sales was 20.3% for Q3 2017, increasing approximately 100 basis points from 19.3% for Q3 2016.

For Q3 2017, the Construction & Industrial division’s net sales climbed 11.8% to $617 million compared to $552 million for Q3 2016. The segment’s adjusted EBITDA increased 13.4% to $76 million for the reported quarter compared to $67 million for the year-ago same period. The segment’s adjusted EBITDA as a percentage of net sales was 12.3% for Q3 2017, reflecting an increase of approximately 20 basis points from 12.1% for Q3 2016.

Cash Matters

As of October 29, 2017, HD Supply’s combined liquidity of approximately $1.2 billion, comprising of $461 million in cash and cash equivalents and $744 million of additional available borrowings under the Company’s senior asset-backed lending facility, based on qualifying inventory and receivables.

Fourth-Quarter 2017 Outlook

For the fourth quarter of fiscal 2017, HD Supply is forecasting net sales are anticipated to be in the range of $1.14 billion and $1.18 billion, adjusted EBITDA in the band of $135 million and $147 million, and adjusted net income per diluted share in the range of $0.41 and $0.47.

For the full year fiscal 2017, HD Supply is projecting net sales to be in the range of $5.08 billion and $5.12 billion, adjusted EBITDA to be in the band of $714 million and $726 million, and adjusted net income per diluted share in the range of $2.23 and $2.29.

Stock Performance Snapshot

January 03, 2018 – At Wednesday’s closing bell, HD Supply’s stock marginally climbed 0.05%, ending the trading session at $39.64.

Volume traded for the day: 7.69 million shares, which was above the 3-month average volume of 2.14 million shares.

Stock performance in the last month – up 9.41%; previous three-month period – up 8.19%; and past six-month period – up 28.37%

After yesterday’s close, HD Supply’s market cap was at $7.40 billion.

Price to Earnings (P/E) ratio was at 33.03.

The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry. This sector was up 0.5% at the end of the session.

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