The company had posted successive earnings surprise in three of the past four quarters. Investors are looking forward to a profit surprise in the second quarter with analysts expecting a 50% year-over-year growth. Growth estimates are likely to rise by 41.1% per annum in the current year and 0.3% in the next year.
During the recently completed first-quarter, higher sales and organic sales growth of 9.9% drove the bottom line higher by 4.7%. The top line rose by 14.2% helped by the return from the company’s growth investments. Sales from Facilities Maintenance rose 6% and that from Construction & Industrial jumped 24.3%.
For full-year 2018, the company had predicted adjusted earnings in the range of $3.11 to $3.27 per share and net sales in the range of $5.82 billion to $5.94 billion. Adjusted EBITDA is estimated to be in the range of $832 million to $862 million.
Investors expect the company’s Q2 bottom line to be benefited by higher sales from Construction & Industrial segment. Traders are predicting HD Supply to upgrade its full-year guidance. Zacks Equity Research believes that the industrial distributor appears as a compelling earnings-beat candidate.
Shares of HD Supply opened lower and dropped down by 1.25% to $45.02 when the Tuesday’s session ended as investors were cautious ahead of the earnings release. The stock had risen more than 12% so far this year and about 37% in the past one year.