HD Supply (HDS) Reports $93M 4Q Loss

HD Supply Holdings, Inc. (HDS) reported fourth quarter non-GAAP EPS of $0.11 before the opening bell Tuesday, compared to the consensus estimate of $0.10. Revenues increased 7.2% from last year to $2.01 billion. Analysts expected revenues of $2.02 billion. Net loss for the quarter was $93 million vs. $66 million from the corresponding period in 2013. The stock is currently flat at $29.40.

For the full-year 2014, the industrial distributor reported net income of $3 million, or $0.02 per share, swinging to a profit in the period. The company’s net loss for full-year fiscal 2013 was $218 million, or ($1.31) per share. 2014 revenue was reported as $9 billion, an increase of $654 million, or 8%, as compared to fiscal 2013.

“I am very pleased with our solid 2014 performance. We delivered 8 percent sales growth and 16 percent Adjusted EBITDA growth,” stated Joe DeAngelo, CEO of HD Supply. “Despite a challenging and uncertain market environment, we remain focused on controllable execution to deliver profitable growth in excess of our markets.”

For Q1/15 ending in April, HDS provided EPS guidance of $0.25 – $0.31 versus consensus of $0.33 per share. The company also issued revenue projection of $2.175 – $2.230 billion, compared to the consensus revenue estimate of $2.26 billion.

On valuation measures, HD Supply Holdings Inc. shares, which currently have an average 3-month trading volume of 1.7 million shares, trade at a trailing-12 P/E of 189.68, a forward P/E of 14.92 and a P/E to growth ratio of 0.64. The median Wall Street price target on the name is $33 with a high target of $38. Currently ticker boasts 8 ‘Buy’ endorsements, compared to 4 ’Holds’ and no ‘Sell’.

Profitability-wise, HDS has a t-12 profit and operating margin of 0.33% and 6.66%, respectively. The $5.71 billion market cap company reported $85 million in cash in its most recent quarter.

HDS currently prints a one year return of about 27% and a year-to-date loss of less than one percent.

HD Supply Holdings Inc. operates as an industrial distribution company in North America. The firm is headquartered in Atlanta, Georgia.

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