HD Supply Holdings Inc (NASDAQ: HDS) has reported the adjusted earnings per share of 44 cents in the fourth quarter of 2016, while the group reported the adjusted revenue of $1.63 billion during the period. The stock fell over 4.5% this morning (As of 11:45AM EDT on March 14th, 2017)as the group disappointed investors who had better expectations. For the fiscal year 2017, the company expects the end market growth of approximately 2-3 percent. Furthermore, the company expects 300 basis points of sales growth in excess of the estimated market growth and operating leverage in the range of 1.5 to 2.0 times for fiscal year 2017.
Meanwhile, the net sales for November, December, and January of fiscal 2016 were $526 million, $527 million and $581 million, respectively. There were 18 selling days in November, 20 selling days in December and 23 selling days in January. The average year-over-year daily sales growth for November, December and January was 2.3 percent, 3.6 percent, and 3.4 percent, respectively. Further, the preliminary net sales in February were approximate $535 million, which represents year-over-year average daily sales growth of approximately 6.4 percent. The preliminary February year-over-year average daily sales growth by business was Facilities Maintenance approximately 0.2 percent, Waterworks approximately 15 percent, and Construction & Industrial approximately 5.3 percent. There were 20 selling days in February 2017.
On January 26th, 2017, the company used cash flow from operations to repay $200 million aggregate principal of HD Supply Holdings Term B-1 Loans. As a result, the company has incurred a $5 million loss on extinguishment of debt, which includes write-offs of $2 million and $3 million of unamortized original issue discount and unamortized deferred financing costs, respectively. In the fourth quarter of fiscal 2016, the ratio of Net debt to Adjusted EBITDA was 4.1 times, has reduced approximately 0.5 turns since fiscal year-end 2015.
For the first quarter ending in May, HD Supply Holdings expects the earnings-per-share to range from 60 cents to 68 cents. The net sales are expected to be in the range of $1,840 million to $1,890 million and adjusted EBITDA is expected to be in the range of $205 million to $220 million.
HD Supply Holdings stock has already risen 43.4% in the last one year (source: Google Finance).