HD Supply Holdings Inc. (HDS) recently announced its financial results for the third quarter. Its adjusted earnings matched consensus forecast but revenue fell short of expectations, sending its shares slightly down in the after-hours trading session on Friday.
The Atlanta, Georgia-based company reported earnings of 1.66 billion, or $10.06 per share for the three months ended November 1, as compared to $131.6 million, or 80 cents per share in the same period of 2019. HD Supply
On an adjusted basis, profit slightly moved up to 47 cents per share, as compared to 46 cents per share in the comparable period last year. Analysts surveyed by FactSet were also looking for an adjusted profit of 47 cents.
Revenue for the quarter came in at $827.5 million, representing a surge of just 0.3 percent from the year-ago quarter. On the other hand, analysts on average were expecting HD Supply
If we look at the month-wise sales performance, revenue for August came in at $268.4 million, while revenue for September was $268.4 million. Moreover, the company generated revenue of $311.8 million in October.
Speaking on the results, the company’s CEO Joe DeAngelo said, “I am very proud of the team as their focused execution continued to deliver improved results, in the face of turbulent end markets and organizational change.”
Moreover, the company said sales for November came in at $222.0 million, up nearly 2.9 percent on a per-day basis when compared to the same month of 2019.
Home Depot is buying HD Supply
Home Depot announced last month that it would acquire HD Supply
HD Supply stock
The deal will help Home depot to strengthen its foothold in industrial materials and maintenance products.
The board of directors of Home Depot and HD Supply unanimously have already given consent for the deal, which is expected to close during the first month of the next year.
Overall, 11 analysts have covered HD Supply
HD Supply stock started the year at a price of around $40 in January and continue trading around the same price level for the next couple of months. However, the stock experienced multiple price drops in March mainly due to the impact of coronavirus on the company’s operations.
The stock mostly traded between $25 to $35 between March and June, except rising over the $35 price mark on June 9 when the company announced its financial result for the first quarter. The stock was finally able to reach its pre-pandemic price level of around $40 in August when the company disclosed an agreement to sell its construction and industrial business for $2.9 billion.
Overall, HD Supply