🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

Ferguson shares drop 3.5% on earnings, revenue miss

EditorRachael Rajan
Published 05/03/2024, 11:58
© Reuters.
FERG
-

WOKINGHAM, England - Ferguson plc (NYSE:FERG), a leading value-added distributor in North America, reported a decline in its second-quarter earnings and revenue, falling short of Wall Street estimates.

The company's adjusted earnings per share (EPS) came in at $1.74, which was $0.08 below the analyst consensus of $1.82. Revenue for the quarter also missed expectations, totaling $6.67 billion against the forecasted $6.72 billion.

The stock responded negatively to the earnings news, with shares down 3.58% in premarket trading.

The company's sales saw a 2.2% decline compared to the same quarter last year, primarily due to approximately 2% deflation. Despite the sales dip, Ferguson's gross margin improved by 20 basis points YoY, attributed to effective pricing execution. The adjusted operating profit for the quarter was $520 million, a 10.7% decrease from the previous year, with the adjusted operating margin at 7.8%. The reported diluted EPS of $1.58 marked a 12.2% decrease YoY, while the adjusted diluted EPS of $1.74 decreased by 8.9%.

Ferguson CEO Kevin Murphy commented on the results, stating, "Our associates continued to execute well during our seasonally lightest quarter. While sales were slightly lower than the prior year, organic performance improved from the first quarter." He also noted that the company is managing costs effectively and is prepared for the seasonally stronger second half.

Looking ahead, Ferguson's financial guidance for FY2024 remains unchanged, with net sales expected to be broadly flat. The company anticipates leveraging structural tailwinds in non-residential construction and further supporting the residential trade professional.

Ferguson said it remains committed to its strategy of organic growth, sustainable dividend growth, market consolidation through acquisitions, and returning capital to shareholders, as evidenced by the declared quarterly dividend of $0.79, reflecting a 5% increase over the prior year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.