HD Supply Posts Narrower Loss In Q4, Shares Climb - Update

(RTTNews) - Industrial and construction distributor HD Supply Holdings, Inc. (HDS) Tuesday reported a sharply narrower loss for the fourth quarter, reflecting prior-year loss on extinguishment and modification of debt and an impairment charge. The shares are up about 8 percent in the early morning trade.

For the fourth quarter ended February 2, 2014, the company's net loss significantly narrowed to $66 million or $0.34 per share from $713 million or $5.46 per share in the previous year.

The prior-year quarter result included a $489 million loss on extinguishment and modification of debt and a $152 million impairment charge.

Adjusted earnings per share for the recent quarter were breakeven, while the company posted an adjusted net loss per share of $0.61 last year.

On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased to $1.93 billion from $1.97 billion a year earlier. Adjusted net sales were up 6.9 percent from last year. Fourteen analysts estimated revenues of $1.92 billion for the fourth-quarter. Organic sales growth was 6.7 percent, compared to the year-ago quarter, as adjusted. The company also said its preliminary net sales in February were $609 million, which represents 4 percent average daily sales growth compared to the prior year.

Further, HD Supply noted that it intends to provide its current outlook for 2014 sales and earnings performance, as well as an outlook regarding its fiscal 2014 first-quarter performance on its fiscal 2013 fourth-quarter and full-year conference call.

HDS is currently trading at $24.89, up $1.82 or 7.89 percent, on a volume of 1.39 million shares.