HD Supply Posts Upbeat Q4 Earnings, But Issues Downbeat Guidance

reported better-than-expected earnings for the fourth quarter. However, the company issued a weak forecast for its current quarter. For its current quarter, the company expects earnings of $0.25 to $0.31 per share on revenue of $2,175 million to $2,230 million. Analysts had projected a profit of $0.33 per share on revenue of $2.26 billion. The Atlanta, Georgia-based company posted a quarterly loss of $93 million, or $0.48 per share, versus a year-ago loss of $66 million, or $0.34 per share. Excluding items, the company posted earnings of $0.11 per share, versus a loss of $0.02 per share. Its revenue rose 7.2% to $2.01 billion. However, analysts were expecting earnings of $0.10 per share on revenue of $2.02 billion. Net sales for the Facilities Maintenance unit climbed 7% to $560 million in the quarter, while sales for Waterworks unit jumped 10% to $516 million. Net sales for Power Solutions unit rose 2% to $462 million in the fourth quarter, while sales for Construction & Industrial - White Cap unit gained 14% to $337 million. Its operating income jumped 78% to $130 million in the quarter, while adjusted EBITDA rose 17% to $172 million. "I am very pleased with our solid 2014 performance. We delivered 8 percent sales growth and 16 percent Adjusted EBITDA growth," stated Joe DeAngelo, CEO of HD Supply. "Despite a challenging and uncertain market environment, we remain focused on controllable execution to deliver profitable growth in excess of our markets." HD Supply shares fell 0.98% to close at $29.40 yesterday.