HD Supply Q3 Earnings Top Estimates

reported better-than-expected earnings for its fiscal third quarter on Tuesday. The Atlanta, Georgia-based company reported quarterly net income of $250 million, or $1.24 per share, compared to $60 million, or $0.30 per share, in the year-ago quarter. Excluding one-time items, the company's adjusted earnings came in at $0.66 per share. Its revenue climbed 5.1 perent year-over-year to $2.01 billion. However, analysts were expecting a profit of $0.65 per share on revenue of $2.03 billion. The average estimate among 12 Estimize users was for earnings of $0.61 per share and revenue of $2.11 billion. Net sales at Facilities Maintenance unit rose 8.5 percent to $716 million in the third quarter, while sales at Waterworks unit rose 1.4 percent to $705 million. Construction & Industrial - White Cap sales surged 9.7 percent to $451 million in the third quarter. Operating income rose 28 percent to $229 million, while adjusted EBITDA climbed 15 percent to $265 million. "I am very pleased with the team's performance in the third quarter. We delivered 5 percent sales growth, 15 percent Adjusted EBITDA growth and 61 percent Adjusted Net Income per Diluted Share growth despite a challenging environment," stated Joe DeAngelo, Chairman and CEO of HD Supply. "We also took action in the third quarter to further enhance our capital structure by redeeming $675 million of debt using the proceeds from the sale of the Power Solutions business unit. We continue to focus on controllable execution to grow in excess of market estimates, deliver operating leverage and generate cash." For the current quarter, HD Supply projects earnings of $0.21 to $0.26 per share, on revenue of $1.62 billion to $1.67 billion. Analysts expected earnings of $0.27 per share on revenue of $1.64 billion. HD Supply shares fell 0.22 percent to close at $31.49 yesterday.