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Wednesday, November 25, 2020

HD Supply’s sales tank 4.4% in Q2 due to COVID-19 restrictions.

  • HD Supply’s sales tank 4.4% in Q2 due to COVID-19 restrictions.
  • The industrial distributor reports £101.57 million of net income.
  • HD Supply refrained from giving future guidance due to COVID-19.

HD Supply Holdings Inc. (NASDAQ: HDS) published its quarterly financial results on Wednesday that reported the company to have generated more profit than Wall Street expectations in the second quarter while its sales came in line with what the analysts had anticipated. HD Supply said last month that it will sell its White Cap business for £2.23 billion.

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Shares of the company climbed about 2% in premarket trading on Wednesday. The stock continued its gain and jumped another 2% on market open. At £31.29 per share, HD Supply has recovered roughly 75% since March when it recorded a year to date low of £17.85 per share. It is now trading around the same level at which it started the year 2020. Learn more about the stock market volatility.

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HD Supply Q2 financial results versus analysts’ estimates

HD Supply said that its net income came in at £101.57 million in the quarter that concluded on 2nd August, that translates to 62.33 pence per share. In the comparable quarter of 2019, it had recorded a lower £91.57 million of net income or 60.79 pence a share.

Adjusted for one-time items, the industrial distributor earned 63.87 pence a share in the recent quarter. In terms of sales, it saw a year over year decline of 4.4% in Q2 to £1.19 billion. According to FactSet, experts had forecast the company to print 56.17 pence of earnings per share on £1.19 billion of revenue in the fiscal second quarter.  

Other prominent figures in HD Supply’s earnings report on Wednesday include an 8.3% decline in facilities maintenance sales to £585.59 million versus £578.81 million expected. Sales from its construction and industrial business, as per the Atlanta-based company, stood at £610.21 million that represents a 0.3% annualised decline and also missed FactSet consensus of £617.37 million.  

HD Supply didn’t give future guidance due to COVID-19

The North American company refrained from giving its future financial guidance due to COVID-19 that has so far infected more than 6.5 million people in the United States and caused over 194 thousand deaths.

HD Supply valued its August sales at £398.60 million that translates to a 0.7% average daily decline. In separate news from the U.S., truck manufacturer Navistar reported to have swung to a loss in its fiscal Q3 on Wednesday.

At the time of writing, HD Supply is valued at £5.07 billion and has a price to earnings ratio of 16.12.

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