HD Supply stock jumps after earnings, sales beat market estimates

One of the largest industrial distributors in North America, HD Supply Holdings Inc (Nasdaq: HDS) posted its fourth-quarter 2018 earnings later on Monday. Both top-line and bottom-line beat estimates, sending shares up 4.66% in after-market trade.

Net sales jumped 22.2% to $1.45 billion in the fourth quarter. The reporting quarter had 14 weeks, vs. 13 weeks a year ago.

Gross profit also rose by 22.2% to $572 million. Operating income soared 27.% to $149 million in the quarter.

In the three-month period, HD Supply Holdings turned to a profit of $92 million, earning $101 million more than last year’s loss of $9 million. Net income was 52 cents per diluted share, compared to a five-cent loss a year ago.

Adjusted EBITDA jumped 23% to $187 million, with the extra 14th week adding about $13 million more.

Adjusted net income climbed 35.2% to $123 million, while adjusted earnings soared 42.9% to 70 cents per diluted share — beating market estimates.

As of Feb. 3, 2019, HD Supply’s combined liquidity was $589 million — $38 million in cash and cash equivalents and $551 million of additional available borrowings under its senior asset-based lending facility.

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