Ferguson's Q3 Margins Expand Despite Continued Deflation - Details Here
Portfolio Pulse from Nabaparna Bhattacharya
Ferguson Plc (NYSE:FERG) reported a 2.4% year-over-year increase in Q3 net sales to $7.308 billion, driven by volume improvements despite a 2% deflation. The company's adjusted gross margin expanded by 50 basis points to 30.5%, while adjusted operating margin remained flat at 9.2%. Adjusted EBITDA rose 2.4% to $722 million. Adjusted EPS increased by 5.5% to $2.32, in line with expectations. Ferguson declared a quarterly dividend of 79 cents per share. The company expects FY24 net sales to be flat year-over-year with an adjusted operating margin of 9.2% – 9.6%.
June 04, 2024 | 1:49 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Ferguson Plc reported a 2.4% increase in Q3 net sales to $7.308 billion, driven by volume improvements despite deflation. Adjusted gross margin expanded by 50 basis points to 30.5%, and adjusted EPS increased by 5.5% to $2.32. The company declared a quarterly dividend of 79 cents per share and expects FY24 net sales to be flat year-over-year.
The increase in net sales and adjusted EPS, along with the expansion in gross margin, are positive indicators for Ferguson's financial health. The declaration of a dividend also adds to investor confidence. However, the flat outlook for FY24 net sales may temper some of the enthusiasm.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100