HD delivery revenue: HDS inventory decreases with reduced Outlook

HD delivery revenue: HDS inventory decreases with reduced Outlook

<p>HD Supply results for the first quarter of 2019 hit the HDS share hard on Tuesday.

Source: HD Supply Holdings

The bad news for HD Supply (NASDAQ: HDS) has to do with its outlook, which the company has lowered. As of now, it says that earnings per share for the second quarter of the year are now expected from $ 1.04 to $ 1.12. This is bad news for the HDS stock, which is below Wall Street‘s earnings per share estimate of $ 1.19 for the quarter.

HD Supply also says that it only expects revenue for the second quarter of 2019 to be between $ 1.62 billion and $ 1.67 billion. Unfortunately for HDS shares, this will result in the company missing the analyst’s revenue of $ 1.70 billion for the period.

The HD Supply earnings report also includes the company’s outlook for the full year 2019. This is also not good news for HDS shares with earnings per share from $ 3.52 to $ 3.70. Wall Street is looking for $ 3.71 earnings per share for the full year.

In terms of revenue for the full year 2019, HD Supply expects it to range from $ 6.25 billion to $ 6.35 billion. This is another hit for the HDS stock with analysts estimating revenue of $ 6.36 billion for the full year 2019.

The poor outlook drags down an otherwise solid HD Supply earnings report. This includes an earnings per share of 84 cents on a turnover of $ 1.49 billion. Wall Street’s earnings per share and revenue estimates for the quarter were 81 cents and $ 1.49 billion.

The HDS share decreased by 6% from noon on Tuesday.

At the time of writing, William White had no position in any of the above securities.