HD Supply beats profit expectations, as sales fall in line with forecasts

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HD Supply Holdings Inc. reported Wednesday reported fiscal second-quarter profit that beat expectations while sales fell in line with forecasts. The industrial distributor company’s stock was still inactive in premarket trading. Net income for the quarter to Aug. 2 rose to $132 million, or 81 cents a share, from $119 million, or 79 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 83 cents, above the FactSet consensus of 73 cents. Sales declined 4.4% to $1.55 billion, matching the FactSet consensus. Facilities maintenance sales fell 8.3% to $761 million, but topped the FactSet consensus of $752.2 million, while construction and industrial sales slipped 0.3% to $793 million to miss expectations of $802.3 million. The company said it was not providing a financial outlook for the third quarter or the full year, given uncertainties over the effects of the COVID-19 pandemic, but said August sales were $518 million, representing an average daily decline of 0.7%. The stock has slipped 2.3% year to date through Tuesday, while the Dow Jones Industrial Average has eased 3.6%.
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