Ferguson (NYSE:FERG) is set to give its latest quarterly earnings report on Tuesday, 2024-12-10. Here's what investors need to know before the announcement.
Analysts estimate that Ferguson will report an earnings per share (EPS) of $2.62.
Anticipation surrounds Ferguson's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
During the last quarter, the company reported an EPS beat by $0.12, leading to a 0.74% drop in the share price on the subsequent day.
Here's a look at Ferguson's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.86 | 2.32 | 1.84 | 2.62 |
| EPS Actual | 2.98 | 2.32 | 1.74 | 2.65 |
| Price Change % | -1.0% | 2.0% | 0.0% | 0.0% |
Performance of Ferguson Shares
Shares of Ferguson were trading at $216.93 as of December 06. Over the last 52-week period, shares are up 18.57%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Opinions on Ferguson
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Ferguson.
Analysts have given Ferguson a total of 9 ratings, with the consensus rating being Outperform. The average one-year price target is $229.67, indicating a potential 5.87% upside.
Understanding Analyst Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Fastenal, United Rentals and W.W. Grainger, three prominent industry players, providing insights into their relative performance expectations and market positioning.
As per analysts' assessments, Fastenal is favoring an Neutral trajectory, with an average 1-year price target of $80.88, suggesting a potential 62.72% downside. United Rentals received a Buy consensus from analysts, with an average 1-year price target of $886.12, implying a potential 308.48% upside. The consensus outlook from analysts is an Neutral trajectory for W.W. Grainger, with an average 1-year price target of $1145.83, indicating a potential 428.2% upside. Overview of Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Fastenal, United Rentals and W.W. Grainger, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ferguson Enterprises | Outperform | 1.38% | $2.46B | 8.10% |
| Fastenal | Neutral | 3.48% | $858.60M | 8.41% |
| United Rentals | Buy | 6.03% | $1.65B | 8.40% |
| W.W. Grainger | Neutral | 4.28% | $1.72B | 14.34% |
Key Takeaway:
Ferguson ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Ferguson is at the bottom compared to its peers.
About Ferguson
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the United States According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its UK business in 2021 and is now solely focused on the North American market.
Ferguson's Financial Performance
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Ferguson's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 1.38%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Ferguson's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 5.68%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 8.1%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Ferguson's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.73% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.98.
To track all earnings releases for Ferguson visit their earnings calendar on our site.
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