HD Supply (HDS) unveiled full-year sales guidance which missed analysts’ estimates on Tuesday as it posted an increase in second-quarter sales, buoyed by rising revenue in its facilities management division and the construction and industrial unit.
The Atlanta-based industrial distribution company reported revenue of $1.62 billion in the three months ended Aug. 14, up from $1.60 billion in the corresponding quarter of the prior year but below the consensus estimate of analysts polled by Capital IQ for $1.63 billion.
Segmented by business unit, net sales increased $10 million, or 1.2% to $830 million in facilities maintenance. Net sales increased $14 million, or 1.8%, to $795 million in the construction and industrial unit.
Adjusted earnings per share came in at $1.08, up from $0.99 a year earlier and in line with the Street’s forecast.
“Despite a difficult start to 2019, I am proud of our more than 11,500 HD Supply associates who continue to provide exceptional service to our customers,” Joe DeAngelo, chief executive of HD Supply, said. “We remain confident in our ability to create value by focusing on what we can control, providing the best customer service in the industry, generating strong free cash flow and executing on our capital allocation strategy.”
The company said that preliminary net sales in August were approximately $521 million, which represents year-over-year average daily sales growth of approximately 1.6%.
For the third quarter, the company is targeting sales of $1.62 billion to $1.67 billion, which is below analysts’ forecast for $1.69 billion. Adjusted net income per share is expected to come in at $0.96 to $1.05, while the Street forecast $1.05.
Net sales in the full-year are expected to be $6.10 billion to $6.20 billion while analysts had projected $6.25 billion. Adjusted net income per share is seen at $3.45 to $3.60, while the Street had forecast $3.58.
This post was originally published on Raleigh Recorder