HD Supply Holdings Posts Q3 Profit; Updates Annual Targets - Quick Facts

(RTTNews) - HD Supply Holdings Inc. (HDS), Tuesday posted a profit for its third-quarter, compared to a loss it recorded last year. On an adjusted basis, net income reflected sales growth, improving gross margins, and lower interest expense. The company also updated its full-year outlook.

For the three-month period, the company reported net income of $51 million or $0.27 per share, compared with loss of $50 million or $0.38 per share a year ago. Excluding items, adjusted net income was $0.38 per share for the quarter.

On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings per share of $0.36 the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter were 7 percent higher at $2.3 billion, from prior year's $2.1 billion. Analysts expected the company to generate revenues of $2.29 billion for the quarter. Organic sales grew 6 percent from last year.

Looking ahead to fiscal 2013, the company expects adjusted earnings in the range of $0.52 and $0.58 per share, updated from prior year's view of $0.52 and $0.64 per share. Revenues are expected to be between $8.5 billion and $8.57 billion, lower than previous view of between $8.55 billion and $8.75 billion. Analysts expect the company to report earnings of $0.52, on revenues of $8.61 billion.

Further, the company said it promoted Evan Levitt to Chief Financial Officer, effective December 11, to succeed Ron Domanico who will be retiring, effective April 17, 2014. Levitt has served as the company's Vice President and Corporate Controller since 2007.