Trending Stock: HD Supply Holdings, Inc. (NASDAQ:HDS)

Shares of HD Supply Holdings, Inc. (NASDAQ:HDS) closed the trading at a price of $39.60 with the positive/negative change of +0.25%. In the past session approximately 1,208,436 shares were exchanged against the average daily trading volume of 1,680,139 shares. The stock touched to the maximum level of $39.86, and it reached the lower level of $39.38 in past session.

HD Supply Holdings, Inc. (HDS), one of the largest industrial distributors in North America, recently stated Net sales of $1.6B for the second quarter of fiscal 2019 ended August 4, 2019, a raise of $24M, or 1.5 percent, as contrast to the second quarter of fiscal 2018.

Gross profit increased $11M, or 1.8 percent, to $633M for the second quarter of fiscal 2019, as contrast to $622M for the second quarter of fiscal 2018. Gross profit was 39.0 percent of Net sales for the second quarter of fiscal 2019, up about 10 basis points from 38.9 percent for the second quarter of fiscal 2018.

Operating income of $211M was flat as contrast to the second quarter of fiscal 2018. Operating income was 13.0 percent of Net sales for the second quarter of fiscal 2019, down about 20 basis points from 13.2 percent for the second quarter of fiscal 2018.

Net income increased $4M, or 3.1 percent, to $135M for the second quarter of fiscal 2019, as contrast to $131M for the second quarter of fiscal 2018.  Net income per diluted share increased $0.08, or 11.3 percent, to $0.79 in the second quarter of fiscal 2019, as contrast to $0.71 in the second quarter of fiscal 2018.

Adjusted EBITDA reduced $2M, or 0.8 percent, to $244M for the second quarter of fiscal 2019, as contrast to $246M for the second quarter of fiscal 2018. Adjusted EBITDA was 15.0 percent of Net sales for the second quarter of fiscal 2019, down about 40 basis points from 15.4 percent for the second quarter of fiscal 2018.

Second-Quarter Monthly Sales Performance

Net sales for May, June and July of fiscal 2019 were $464M, $521M and $639M, respectively.  There were 19 selling days in May, 20 selling days in June and 24 selling days in July of fiscal 2019, contrast to 20 selling days in May, 19 selling days in June and 24 selling days in July of fiscal 2018.  Average year-over-year daily sales growth for May, June and July was 0.2 percent, 1.9 percent and 2.1 percent, respectively.

Preliminary August Sales Results

Preliminary Net sales in August 2019 were about $521M, which represents year-over-year average daily sales growth of about 1.6 percent.  Preliminary August year-over-year average daily sales growth by business section was about 1.2 percent in Facilities Maintenance and about 2.0 percent in Construction & Industrial.  There were 20 selling days in both August 2019 and August 2018.

The company has PEG ratio of 13.31 and price to cash ratio of 163.76. In the profitability analysis, net profit margin of the firm was recorded at 6.70% and operating profit margin was calculated at 10.90% while gross profit margin was measured as 39.20%. Beta factor, which measures the riskiness of the security, was registered at 1.10.

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