LONDON, UK / ACCESSWIRE / July 2, 2018 / If you want access to our free earnings report on HD Supply Holdings, Inc. (NASDAQ: HDS) ("HD Supply"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HDS. The Company reported its first quarter fiscal 2018 operating and financial results on June 05, 2018. The industrial distributor outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and full fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
HD Supply reported net sales of $1.39 billion in the first quarter of the fiscal year 2018, ended April 29, 2018, reflecting an increase of 14.2% compared to $1.22 billion in Q1 FY17. The Company's organic sales growth was 9.9% in the reported quarter. HD Supply's revenue numbers beat analysts' estimates of $1.36 billion.
During Q1 FY18, HD Supply's gross profit advanced 14.0% to $552 million compared to $484 million in Q1 FY17. The Company's gross profit was 39.7% of net sales in the reported quarter, down approximately 10 basis points (bps) from 39.8% in the year earlier same quarter.
For Q1 FY18, HD Supply's operating income increased 17.1% to $151 million compared to $129 million in Q1 FY17. The Company's operating income was 10.9% of net sales in the reported quarter, up approximately 30 bps from 10.6% in the prior year's comparable quarter.
HD Supply's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) advanced 21.0% to $190 million compared to $157 million in Q1 FY17. The Company's adjusted EBITDA was 13.7% of net sales in the reported quarter, up approximately 80 bps from 12.9% in the year earlier corresponding quarter.
For Q1 FY18, HD Supply's net income totaled $89 million, or $0.48 per diluted share, compared to $85 million, or $0.42 per diluted share, in Q1 FY17. The Company's adjusted net income came in at $130 million, or $0.70 per diluted share, in the reported quarter compared to $80 million, or $0.39 per diluted share, in the year earlier same quarter. HD Supply's earnings surpassed Wall Street's estimates of $0.63 per share.
Business Unit Performance
During Q1 FY18, HD Supply's Facilities Maintenance segment's net sales rose 6% to $723 million compared to $682 million in Q1 FY17. The segment's adjusted EBITDA advanced 13.9% to $123 million in the reported quarter versus $108 million in the year earlier comparable quarter. The Facilities Management segment's adjusted EBITDA was 17.0% of net sales in Q1 FY18, up approximately 120 bps from 15.8% in Q1 FY17.
For Q1 FY18, HD Supply's Construction & Industrial segment's net sales surged 24.3% to $666 million compared to $536 million in Q1 FY17. The segment's organic sales growth was approximately 14.4% in the reported quarter. For Q1 FY18, the Construction & Industrial segment's adjusted EBITDA soared 36.7% to $67 million compared to $49 million in Q1 FY17.
As of April 29, 2018, HD Supply's combined liquidity of $880 million was comprised of $150 million in cash and cash equivalents, and $730 million of additional available borrowings under the Company's senior asset-based lending facility, based on qualifying inventory and receivables.
Preliminary May Sales Results
HD Supply's preliminary net sales in May 2018 were approximately $488 million, which represented y-o-y average daily sales growth of approximately 18.7%. The Company's preliminary May y-o-y average daily sales growth by business segments were approximately 6.3% for the Facilities Maintenance segment, and approximately 34.5% for the Construction & Industrial segment.
For the second quarter of the fiscal year 2018, HD Supply is forecasting net sales to be in the range of $1.535 billion and $1.595 billion; adjusted EBITDA to be in the band of $235 million and $245 million; and adjusted net income per diluted share to be in the range of $0.92 and $0.97.
For the full fiscal year 2018, HD Supply is projecting net sales to be in the band of $5.820 billion and $5.940 billion; adjusted EBITDA to be in the range of $832 million and $862 million; and adjusted earnings per diluted share to be in the band of $3.11 and $3.27.
Stock Performance Snapshot
June 29, 2018 - At Friday's closing bell, HD Supply's stock slightly fell 0.53%, ending the trading session at $42.89.
Volume traded for the day: 2.42 million shares, which was above the 3-month average volume of 1.81 million shares.
Stock performance in the last month – up 5.30%; previous three-month period – up 14.10%; past twelve-month period – up 40.35%; and year-to-date – up 7.14%
After last Friday's close, HD Supply's market cap was at $7.93 billion.
Price to Earnings (P/E) ratio was at 30.08.
The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry.
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