HD Supply Holdings (HDS) Tops Q4 EPS by 5c, Beats on Revenues; Offers FY18 EPS/Revenues Outlook Above Consensus

HD Supply Holdings (NASDAQ: HDS) reported Q4 EPS of $0.49, $0.05 better than the analyst estimate of $0.44. Revenue for the quarter came in at $1.18 billion versus the consensus estimate of $1.16 billion.

Fiscal Year 2018 and First-Quarter 2018 Outlook

For fiscal year 2018, the company estimates end market growth of approximately 2-3 percent. In accordance with our fiscal calendar, fiscal year 2018 is a 53-week year.

For first-quarter 2018, the company anticipates Net sales to be in the range of $1,325 million to $1,375 million, Adjusted EBITDA1 in the range of $174 million to $184 million, and Adjusted net income per diluted share1 in the range of $0.60 to $0.66. The first-quarter 2018 Adjusted net income per diluted share range assumes a fully diluted weighted average share count of 186 million. At the mid-point of the ranges, our first-quarter 2018 Net sales and Adjusted EBITDA translate into approximately 11 percent growth and 14 percent growth, respectively, versus prior year. The recently acquired A.H. Harris business is contributing approximately $50 million in sales, $5 million in EBITDA and $0.02 in Adjusted net income per diluted share to our estimated first-quarter 2018 results.

For the full year of fiscal 2018, Net sales are anticipated to be in the range of $5,760 million and $5,910 million, Adjusted EBITDA1 in the range of $815 million and $855 million and Adjusted net income per diluted share1 in the range of $2.99 and $3.21. The full year of fiscal 2018 Adjusted net income per diluted share range assumes a fully diluted weighted average share count of approximately 186 million. The recently acquired A.H. Harris business is contributing approximately $360 million in sales, $40 million in EBITDA and $0.18 in Adjusted net income per diluted share to our estimated full year fiscal 2018 results.

GUIDANCE:

HD Supply Holdings sees FY2018 EPS of $2.99-$3.21, versus the consensus of $2.27. HD Supply Holdings sees FY2018 revenue of $5.76-5.91 billion, versus the consensus of $5.18 billion.

For earnings history and earnings-related data on HD Supply Holdings (HDS) click here.

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