HD Supply Q1 Loss Narrows, Sales Rise 6% - Update

(RTTNews) - Industrial and construction distributor HD Supply Holdings, Inc. (HDS) Tuesday reported a significantly narrower loss for the first quarter, helped by 6 percent growth in sales. On an adjusted basis, the company posted earnings for the quarter, reflecting sales growth, improving gross margins, and a reduction in interest expense.

For the first quarter ended May 4, net loss was $12 million or $0.06 per share, narrower than $131 million or $1.00 per share in the prior year.

Loss per share from continuing operations was $0.01, compared to a loss of $1.00 per share in the previous year. Adjusted earnings totaled $0.20 per share for the recent quarter, compared to an adjusted loss of $0.11 per share in the first quarter of fiscal 2013.

On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.18 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 6 percent to $2.16 billion from $2.05 billion a year earlier. Analysts expected revenues of $2.15 billion for the quarter.

Joe DeAngelo, CEO of the company said, "I am pleased with our solid performance this quarter, despite the adverse impact of the severe weather we experienced throughout February and March. We remain cautiously optimistic that our end markets will continue to build on the emerging strength that we are seeing in select geographies."

Looking ahead to the second quarter, the company expects adjusted earnings per share to be in the range of $0.42 to $0.49. Net sales are anticipated to be between $2.35 billion and $2.45 billion. Analysts expect the company to report second-quarter profit per share of $0.48, on revenues of $2.41 billion.

Further, the company said its preliminary net sales in May were $712 million, up 9.6 percent from last year.

HDS closed Monday's regular trading at $27.60 on the Nasdaq.