Why Ferguson Shares Are Slumping After Q2 Earnings
Portfolio Pulse from Nabaparna Bhattacharya
Ferguson Plc (NYSE:FERG) shares dropped after reporting Q2 earnings that missed analyst expectations. Earnings per share were $1.74, below the consensus of $1.84, and sales of $6.67 billion also fell short of the expected $6.76 billion. The company saw a decline in net sales in both the U.S. and Canada, with a 2.2% and 3.7% decrease respectively. Operating profit decreased by 13.1% to $477 million, and adjusted EBITDA fell to $568 million from $630 million year-over-year. Despite these results, Ferguson announced a quarterly dividend of $0.79 and completed share repurchases of $142 million. The company expects full-year 2024 sales to be flat and maintains its adjusted operating margin forecast.
March 05, 2024 | 4:20 pm
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Ferguson Plc shares declined following a Q2 earnings report that missed analyst expectations, with lower sales and profit figures reported.
The decline in Ferguson's stock price is directly related to the company's Q2 earnings report, which showed lower-than-expected earnings per share and sales figures. Additionally, the report highlighted declines in net sales in both the U.S. and Canada, as well as a decrease in operating profit and adjusted EBITDA. These factors contribute to a negative short-term outlook for the stock, as investors react to the missed expectations and the potential implications for future performance.
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