HD Supply Q1 Earnings Beat Views

HD Supply Holdings Inc HDS reported stronger-than-expected earnings for the first quarter. The Atlanta, Georgia-based company posted quarterly net income of $242 million, or $1.21 per share, versus a year-ago net loss of $12 million, or $0.06 per share. Excluding items, the company's earnings rose to $0.33 per share from $0.17 per share. Its revenue gained 6 percent year-over-year to $2.22 billion. However, analysts were expecting a profit of $0.29 per share on revenue of $2.22 billion. The average estimate among 5 Estimize users was for earnings of $0.20 per share and revenue of $2.15 billion. Net sales at its Facilities Maintenance unit rose 5 percent to $635 million in the first quarter, while sales at its Waterworks unit surged 3 percent to $570 million. Power Solutions net sales jumped 8 percent to $499 million, while net sales at its Construction & Industrial - White Cap unit surged 13 percent to $388 million in the first quarter. Its operating income climbed 44 percent to $167 million in the quarter, while adjusted EBITDA rose 14 percent to $208 million. Its gross profit, as percent of net sales, widened to 29.2 percent from 28.8 percent. As of May 3, 2015, the company had combined liquidity of around $1,215 million. "I am very pleased with our solid first quarter performance. We delivered 6 percent sales growth, 14 percent Adjusted EBITDA growth and 94% Adjusted EPS growth," stated Joe DeAngelo, CEO of HD Supply. "Despite adverse weather and a challenging environment, we remained focused on controllable execution to deliver profitable growth in excess of our market growth estimates while keeping our teams safe." For the current quarter, HD Supply projects earnings of $0.60 to $0.66 per share, on revenue of $2.5 billion to $2.56 billion. Analysts had expected earnings of $0.63 per share on revenue of $2.53 billion. HD Supply shares fell 2.35 percent to close at $32.45 yesterday.