Negative Buzzer of Services Sector :HD Supply Holdings, Inc. (NASDAQ: HDS)

HD Supply Holdings, Inc. (NASDAQ: HDS) moved downward -0.09% and ended at $43.75. The stock’s market capitalization arrived at $8.038B and total traded volume was 813,243 shares. The stock has a 52-week highest price of $45.24 and its 52-week lowest price was called at $30.01. During last trade, its maximum trading price was registered $44.07 and it’s the minimum trading price was noted $43.51.

HD Supply Holdings, Inc. (NASDAQ: HDS), one of the largest industrial distributors in North America, today reported Net sales of $1.4 billion for the first quarter of fiscal 2018 ended April 29, 2018, an increase of $173 million, or 14.2 percent, as compared to the first quarter of fiscal 2017.  Organic sales growth for the first quarter of fiscal 2018 was 9.9 percent, as compared to the first quarter of fiscal 2017.

Gross profit increased $68M, or 14.0 percent, to $552M for the first quarter of fiscal 2018, as contrast to $484M for the first quarter of fiscal 2017. Gross profit was 39.7 percent of Net sales for the first quarter of fiscal 2018, down about 10 basis points from 39.8 percent for the first quarter of fiscal 2017.

Operating income increased $22M, or 17.1 percent, to $151M for the first quarter of fiscal 2018, as contrast to $129M for the first quarter of fiscal 2017. Operating income was 10.9 percent of Net sales for the first quarter of fiscal 2018, up about 30 basis points from 10.6 percent for the first quarter of fiscal 2017.

Net income increased $4M, or 4.7 percent, to $89M for the first quarter of fiscal 2018, as contrast to $85M for the first quarter of fiscal 2017.

Adjusted EBITDA increased $33M, or 21.0 percent, to $190M for the first quarter of fiscal 2018, as contrast to $157M for the first quarter of fiscal 2017. Adjusted EBITDA was 13.7 percent of Net sales for the first quarter of fiscal 2018, up about 80 basis points from 12.9 percent for the first quarter of fiscal 2017.

Adjusted net income increased $50M, or 62.5 percent, to $130M for the first quarter of fiscal 2018 as contrast to $80M for the first quarter of fiscal 2017.  Adjusted net income per diluted share was $0.70 in the first quarter of fiscal 2018, as contrast to $0.39 in the first quarter of fiscal 2017.

 

As of April 29, 2018, HD Supply’s combined liquidity of $880M was comprised of $150M in cash and cash equivalents and $730M of additional accessible borrowings (not including $174M of borrowings on accessible cash balances) under HD Supply, Inc.’s senior asset-based lending facility, based on qualifying inventory and receivables.

Facilities Maintenance

 

Net sales increased $41M, or 6.0 percent, to $723M in the first quarter of fiscal 2018, as contrast to $682M for the first quarter of fiscal 2017.  Adjusted EBITDA increased $15M, or 13.9 percent, to $123M for the first quarter of fiscal 2018, as contrast to $108M for the first quarter of fiscal 2017.  Adjusted EBITDA was 17.0 percent of Net sales for the first quarter of fiscal 2018, up about 120 basis points from 15.8 percent for the first quarter of fiscal 2017.

 

Construction & Industrial

Net sales increased $130M, or 24.3 percent, to $666M in the first quarter of fiscal 2018, as contrast to $536M for the first quarter of fiscal 2017.  Organic sales growth was about 14.4 percent in the first quarter of fiscal 2018 as contrast to the first quarter of fiscal 2017. Adjusted EBITDA increased $18M, or 36.7 percent, to $67M for the first quarter of fiscal 2018, as contrast to $49M for the first quarter of fiscal 2017.  Adjusted EBITDA was 10.1 percent of Net sales for the first quarter of fiscal 2018, up about 100 basis points from 9.1 percent for the first quarter of fiscal 2017.

First-Quarter Monthly Sales Performance

Net sales for February, March and April of fiscal 2018 were $391M, $423M and $575M, respectively.  There were 20 selling days in February, 20 selling days in March and 25 selling days in April in both 2018 and 2017.  Average year-over-year daily sales growth for February, March and April was 11.7 percent, 12.0 percent and 17.7 percent, respectively. On an organic basis, average year-over-year daily sales growth for February, March and April was 11.7 percent, 7.5 percent and 10.3 percent, respectively.

In the liquidity ratio analysis; HD Supply Holdings, Inc.’s (HDS) debt to equity ratio was 1.41 while current ratio was 2.20. The company has the institutional ownership of 99.36% while the Beta factor was 1.24. The stock’s RSI amounts to 50.09.

Andrew Carr

Andrew Carr covers the Business news across the all us market sectors for Streetobserver.com. He has over 5 years experience writing financial and business news. He is a graduate of the University of Florida graduating with an MBA. He focuses on adding value to investors' portfolios via thoroughly checked proprietary information and data sources. He has a very strong interest in stock trading, and other various investments. He currently lives in Fort Myers, FL with his wife Heidi.

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