HD Supply Holdings’ net income climbs to £1.24 billion in the fiscal third quarter

HD Supply Holdings Inc. (NASDAQ: HDS) said on Friday that its profit in the fiscal third quarter matched expectations, but sales came in weaker than expected. The American company struck a deal with Home Depot last month that will see it acquired by the home improvement retailer for £5.95 billion.

At £41.55 per share, HD Supply Holdings Inc. is currently a little under 40% up year to date in the stock market after recovering from a low of £17.27 per share in March due to the COVID-19 disruptions. The insight into the price action should come in handy if you’re interested in investing in the stock market.

HD Supply’s Q3 financial results versus analysts’ estimates

HD Supply said that its net income in the quarter that concluded on 1^st November printed at £1.24 billion that translates to £7.49 per share. In the same quarter last year, its net income was capped at a significantly lower £97.94 million or 59.54 pence per share.

The Atlanta-based company attributed the sharp increase in its net income to its construction and industrial business that it offloaded in the recent quarter. Adjusted for one-time items, HD Supply earned 34.98 pence per share versus the year-ago figure of 34.23 pence.

The industrial distributor posted a 0.3% year over year growth in its Q3 sales on Friday to £615.85 million. According to FactSet, experts had forecast the company to print £622.40 million of sales in the third quarter. Their estimate for per-share earnings stood at 34.98 pence.

HD Supply said that it generated £165.22 million of sales in November, representing an about 2.9% average daily increase versus last year. In the prior quarter (Q2), HD Supply had registered a 4.4% decline in sales, as per the report published in September.

CEO Joe DeAngelo’s comments on Friday

CEO Joe DeAngelo commented on the financial report on Friday and said:

“I am very proud of the team ass their focused execution continued to deliver improved results, in the face of turbulent end markets and organisation change. It is a testament to their dedication to our customers and their commitment to safety delivering best-in-class service.”

HD Supply performed slightly upbeat in the stock market last year with an annual gain of a little under 10%. At the time of writing, it is valued at £6.46 billion and has a price to earnings ratio of 21.98.