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HD Supply Q2 Earnings Top Estimates

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HD Supply Holdings Inc (NASDAQ: HDS) reported better-than-expected earnings for its second quarter on Wednesday.

The Atlanta, Georgia-based company reported quarterly net income of $109 million, or $0.54 per share, compared to $48 million, or $0.24 per share, in the year-ago quarter. Excluding one-time items, the company's earnings rose to $0.56 per share from $0.35 per share.

Its revenue rose 6.7 percent year-over-year to $2.01 billion. However, analysts were expecting earnings of $0.54 per share on revenue of $2.00 billion.

Net sales at Facilities Maintenance unit gained 6.9 percent year-over-year to $733 million in the second quarter, while sales at Waterworks unit surged 5.6 percent to $702 million. Net sales at Construction & Industrial - White Cap unit jumped 10.8 percent to $431 million in the second quarter.

Its operating income climbed 36 percent to $222 million, while adjusted EBITDA rose 15 percent to $258 million in the latest quarter.

As of August 2, 2015, the company had combined liquidity of around $1,451 million.

"I am very pleased with the team's performance in our second quarter. We delivered 7 percent sales growth, 15 percent Adjusted EBITDA growth and approximately 60% Adjusted EPS growth despite a challenging environment," stated Joe DeAngelo, CEO of HD Supply. "We also took transformative actions this quarter including the announcement to sell our Power Solutions unit. We continue to focus on controllable execution that enables customer success, extends our differentiation and accelerates value creation."

For the current quarter, HD Supply projects earnings of $0.63 to $0.68 per share, on revenue of $2 billion to $2.05 billion.

HD Supply shares gained 3.36 percent to close at $33.25 yesterday.

Posted-In: profitEarnings News Guidance


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