The HD Supply Holdings Inc. (NASDAQ: HDS) said Friday that its third quarter earnings were in line with expectations but that sales were weaker than expected. The US company signed a deal with Home Depot last month under which it will be acquired by the home improvement store operator for £5.95 billion.
Currently trading at £41.55 per share, HD Supply Holdings Inc. is slightly less than 40% higher than the previous year’s share price on the stock exchange, after recovering from a low of £17.27 per share in March due to the COVID 19 disruption. This insight into what is happening in the share price should prove useful if you are interested in investing in the stock market.
HD Supply’s Q3 financial results compared to analysts’ estimates
HD Supply stated that its net profit for the quarter ended November 1 was £1.24 billion, or £7.49 per share. For the same quarter last year, net profit was capped at a much lower level of £97.94 million or 59.54 pence per share.
The Atlanta-based company attributed the sharp increase in net profit to its construction and industrial businesses, which it had outsourced in the last quarter. Adjusted for non-recurring items, HD Supply earned 34.98 pence per share compared to 34.23 pence per share in the previous year.
The industrial distributor reported on Friday that its revenues increased 0.3% year-on-year to £615.85 million in the third quarter. According to FactSet, experts had predicted that the company would achieve revenues of £622.40 million in the third quarter. Their estimate for earnings per share was 34.98 pence.
HD Supply stated that it had revenues of £165.22 million in November, an average daily increase of around 2.9% over the previous year. In the previous quarter (Q2) HD Supply had reported a 4.4% decline in sales according to the report published in September.
Comments from CEO Joe DeAngelo on Friday
CEO Joe DeAngelo commented on Friday’s financial report and said
“I am very proud of the team, whose focused execution has continued to deliver better results despite turbulent end markets and organizational changes. It is a testament to their commitment to our customers and their dedication to safety by delivering best-in-class service”.
HD Supply performed slightly better last year with an annual profit of just under 10% on the stock market. At the time of writing this report, it is valued at £6.46 billion and has a price-earnings ratio of 21.98.