HD Supply’s stock slips after profit matches expectations but sales come up short

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Shares of HD Supply Holdings Inc. slipped 0.2% in afternoon trading Friday, after the wholesale distributor to the maintenance, repair and operations industries reported a fiscal third-quarter profit that matched expectations and sales that came up short. Net income for the quarter to Nov. 1 rose to 1.66 billion, or $10.06 a share, from $131.6 million, or 80 cents a share, boosted by the gain on the sale of its construction and industrial business. Excluding non-recurring items, adjusted earnings per share inched up to 47 cents from 46 cents, compared with the FactSet consensus of 47 cents. Sales increased 0.3% to $827.5 million, but that was below the FactSet consensus of $836.3 million. For the month of November, the company said sales were about $222.0 million, representing an average daily increase of about 2.9% from a year ago. On Nov. 15, the company announced an agreement to be acquired by Home Depot Inc. in a deal valued at about $8 billion. HD Supply shares have run up 42.1% over the past three months while the S&P 500 has gained 7.7%.
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