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Omar Venerio
Omar Venerio
Articles (1561) 

2 Stocks Decline Tuesday

HD Supply Holdings, Ctrip.com International decline on earnings reports

September 10, 2019 | About:

Shares of HD Supply Holdings Inc. (NASDAQ:HDS) fell more than 5% on Tuesday after the company posted second-quarter results. Revenue grew 1.3% from the prior-year quarter to $1.62 billion, falling $10 million short of expectations. The company posted earnings of $1.08 per share, in line with analysts' estimates.

During the quarter, the gross profit rose $11 million, or 1.8% from the prior-year quarter, to $633 million. The gross profit margin was 39% of net sales, up 10 basis points from the year-ago quarter.

Further, the adjusted earnings before interest, taxes, depreciation and amortization decreased by $2 million, or 0.8%, to $244 million. Adjusted Ebitda was 15% of net sales, down 40 basis points from last year.

Looking ahead to the third quarter, the company expects revenue between $1.62 billion and $1.67 billion. It also projects adjusted EBITDA ranging from $240 million to $255 million.

During the quarter ended June 30, Jana Partners (Trades, Portfolio) reduced its stake by 27% to 2,002,273 shares, while Mario Gabelli (Trades, Portfolio) sold out of the stock.

Shares of Ctrip.com International Ltd. (NASDAQ:CTRP) declined more than 2.5% on Tuesday.  Revenue of $1.27 billion beat expectations by $20 million and earnings of 33 cents per share topped estimates by 3 cents.

The gross margin was 79%, down from 80% in the prior-year quarter. Sales and marketing expenses decreased 4% from the year-ago quarter to $307 million. Further, the operating margin was 15%, up from 10%.

Moreover, Executive Chairman James Liang announced the company is changing its name to Trip.com Group Limited.

"The new name reflects the services and products we provide, and can be easily remembered by global users," he said. "In October, we will celebrate the 20th Anniversary. Over the next decade, we will strive to become one of the most innovative and respected companies in the global travel industry."

Looking ahead to the third quarter, the company expects net revenue growth at a year-over-year rate of 10% of 15%.

At the end of the second quarter, Ken Fisher (Trades, Portfolio), Jim Simons (Trades, Portfolio)' Renaissance Technologies, Chris Davis (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) reduced their holdings by 2%, 23%, 4% and 77%.

Disclosure: The author holds no position in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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