Investors Punish HD Supply For Missing Q2 Results, Outlook

Investors of HD Supply Holdings, Inc. HDS dumped the stock after the company delivered below than expected results for the second quarter.

The company reported net income of $98 million, down from $109 million while EPS dipped from $0.54 to $0.49. On an adjusted basis, profit increased from $114 million to $171 million and EPS from $0.56 to $0.85. This is $0.03 a share lower than the Street estimates of $0.88 a share.

HD Supply's net sales advanced 4.1 percent to $2.0 billion. Analysts predicted $2.03 billion revenue. The company believes its results represented 1 percentage growth higher than the market growth expectations.

Chairman and CEO Joe DeAngelo commented, "We intend to continuously invest to ensure our customer experience is exceptional and to extend and evolve our leading market positions."

Going forward, the company expects adjusted EPS to be $0.77-$0.82 on revenue guidance of $1.985-$2.035 billion for the third quarter. Street analysts are looking for an EPS of $0.91 on revenue of $2.06 billion.

Following the news, the stock dropped $2.68, or 7.39 percent, to $33.58 in the pre-market trading on Wednesday.