HD Supply Holdings Inc. (HDS) beat market estimates on revenues and earnings for the second quarter of 2018, sending the stock climbing over 3% during pre-market hours. Net sales rose 18.3% to $1.6 billion from the same period last year while organic sales grew 10.1%.
Net income dropped to $131 million or $0.71 per share during the quarter from $442 million or $2.22 per share in the same period last year. Adjusted net income was $182 million or $0.99 per share.
The company posted sales increases for both its business segments in the quarter. Monthly net sales for May, June, and July amounted to $488 million, $486 million and $626 million, respectively. Preliminary net sales in August were around $513 million, reflecting average daily sales growth of approximately 17.7% on a year-over-year basis.
For the third quarter of 2018, HD Supply expects net sales of $1.56 billion to $1.61 billion, which translates to a growth of around 16% at the midpoint of the range. Adjusted EPS is expected to be $0.95 to $1.00 for the quarter.
For the full year of 2018, net sales are expected to come in between $5.9 billion to $6 billion and adjusted EPS is supposed to be $3.22 to $3.35.