Post-Earnings Coverage HD Supply Holdings Impresses

HD Supply Beats Earnings Estimates, Provides Upbeat Guidance 

LONDON, UK / ACCESSWIRE / June 9, 2016 / ActiveWallSt.com announces its post-earnings coverage on HD Supply Holdings, Inc. (NASDAQ: HDS). For its Q1 FY16 financial results, the company announced on Tuesday, June 07, 2016, a loss as compared to a profit in the year ago period. However, excluding special items, net income more than doubled, driven by 7% increase in revenue, thus beatings analysts’ expectations. The company also presented upbeat earnings guidance for Q2 FY16. Register with us now for your free membership and see our complete reports on these equities at:

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For Q1 FY16, the Atlanta-based company posted adjusted diluted earnings of $0.51 per share on $1.78 billion in revenues, as compared to adjusted earnings of $0.25 on revenue of $1.66 billion in Q1 FY15. The earnings results also beat analyst consensus estimate of $.047 however came short of revenue estimate of $1.84 billion. HD Supply has beaten quarterly earnings estimates for the past two years.

Today, ActiveWallSt.com is promoting its earnings coverage on HDS. Get all of our free coverage by signing up to http://www.activewallst.com/register/.

The industrial supplies distributor, on a GAAP basis, reported net loss of $0.07 per share, compared with net income of $1.21 per share in Q1 FY15. The loss was primarily attributed to a charge of $115 million payment for extinguishment of debt, while the company had also reported a tax benefit of $189 million in Q1 FY15 as result of IRS and state audit settlements. HD Supply, which was spun off from The Home Depot Inc. (NYSE: HD) in 2007, stated that its Q1 FY16 gross margin was up approximately by 50 basis points at 34.2% as compared to 33.7% in Q1 FY15.

For the quarter ended on May 1, 2016, HD Supply reported that revenue from its Facilities Maintenance segment increased 6.6%to $677 million, while Waterworks revenue rose 6.1% to $605 million. Construction & Industrial – White Cap, revenue jumped 9.8% to $447 million. On April 27, 2016, HD Supply announced sale of its Interior Solutions business unit to California-based Interior Specialists Inc. (ISI) for an undisclosed amount. ISI is owned by Private Equity investor Little John & Co. HD Supply said the deal was concluded on May 31, 2016.

HD Supply, one of the largest industrial distributors in North America, also issued guidance for Q2 FY16, with the company’s earnings forecast coming in above analysts’ consensus estimate, though it offered a soft revenue outlook. For Q2 FY16, HD Supply expects sales to be in a range of $2.00 billion to $2.05 billion and adjusted EPS in a range of $0.85 to $0.90. Analysts’ were expecting adjusted earnings of $0.84 per share with $2.12 billion in revenue.

HD Supply shares rose 2.43% to $35.77 at the close of stock market, post the earnings release. Since the beginning of the year, the company’s stock price has climbed 19.11% as compared to 3.34% in S&P 500, for the past one month the company’s stock price are up 7.74% as compared to 2.60% return posted by S&P 500.

One of the closest competitor for HD Supply, W.W. Grainger Inc. (NYSE: GWW), is expected to announce its earnings result on July 19, 2016.

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SOURCE: Active Wall Street

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