Building materials distributor GMS (NYSE:GMS) will be reporting results this Wednesday before the bell. Here’s what to look for.
GMS missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $1.26 billion, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ EBITDA estimates.
Is GMS a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GMS’s revenue to decline 8.2% year on year to $1.30 billion, a reversal from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GMS has missed Wall Street’s revenue estimates five times over the last two years.
Looking at GMS’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Boise Cascade’s revenues decreased 6.6% year on year, beating analysts’ expectations by 1.6%, and Hudson Technologies reported a revenue decline of 15.2%, topping estimates by 6%. Boise Cascade traded down 5% following the results while Hudson Technologies was up 16.1%.
Read our full analysis of Boise Cascade’s results here and Hudson Technologies’s results here.
Investors in the industrial distributors segment have had steady hands going into earnings, with share prices flat over the last month. GMS’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $83.33 (compared to the current share price of $76.14).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.