2 Stocks to Watch Wednesday

GuruFocus.com
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- By Omar Venerio

Shares of HD Supply Holdings Inc. (HDS) fell nearly 2% after reporting second-quarter earnings of 99 cents per share on $1.6 billion in revenue. The company beats earnings estimates by 3 cents and revenue expectations by $20 million.

Gross profit rose 15.4 % to $622 million from $539 million in the prior-year quarter . The gross profit was 38.9 % of net sales, down from 3 9.9 % a year ago.


Moreover, a djusted earnings before interest, taxes, depreciation and amortizatio n increased 18.3 % to $246 million .

Looking ahead to the third quarter , the company expects n et sales between $1.56 billion and $1.61 billion, adjusted EBITDA in the range of $239 million to $249 million and a djusted net income per diluted share in the range of 95 cents to $1. For the full year, net sales are expected to be in the range of $5.9 billion to $6 billion, adjusted EBITDA between $845 million and $870 million and a djusted net income per diluted share in the range of $3.22 to $3.35.

Shares of Coupa Software Inc.(COUP ) jumped more than 6 % after reporting second- quarter earnings of 5 cents per share on $ 61 . 7 2 million in revenue, reflecting growth of 38 . 5 % year over year.

Further, the company posted o perating cash flow of $11.3 million and free cash flow of $9 million.

For the third quarter, the company expects t otal revenue between $62 million and $63 million. By segment, subscription revenues are projected to range from $56.5 million to $57.5 million and professional services and other revenues are forecasted to be approximately $5.5 million. The non-GAAP net loss per share is expected to be between 4 cents and 1 cent per share. For fiscal 2019, revenue guidance is $243 million to $245 million. The non-GAAP net loss outlook is for between 11 cents and 6 cents per share.

D isclosure: The author holds no positions in any stocks mentioned .

This article first appeared on GuruFocus.


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