Ferguson shares tumble as Q1 earnings miss estimates

=NEWPORT NEWS, Va. – Ferguson plc (NYSE:FERG) reported first quarter earnings that fell in need of analyst expectations, sending shares down 7% in early buying and selling. The plumbing and heating merchandise distributor noticed modest gross sales progress however confronted headwinds from commodity worth deflation.

Ferguson posted adjusted earnings per share of $2.45 for the quarter, lacking the analyst consensus of $2.88. Income got here in at $7.77 billion, beneath estimates of $8.07 billion however up 0.8% YoY. Gross sales quantity grew 3%, partially offset by roughly 2% deflation.

“Our associates remained centered on execution, delivering income progress within the quarter, regardless of continued market headwinds and commodity worth deflation,” mentioned CEO Kevin Murphy. He famous the 12 months has began largely as anticipated, with the corporate’s balanced enterprise combine offering confidence in continued market outperformance.

Gross margin declined 10 foundation factors YoY to 30.1%. Working margin was 8.6%, or 9.1% on an adjusted foundation. The corporate maintained its fiscal 2025 steerage for modest full 12 months income progress with continued outperformance.

Ferguson declared a quarterly dividend of $0.83 per share, a 5% improve over the prior 12 months. The corporate accomplished one acquisition through the quarter and one other subsequently, whereas repurchasing $256 million in shares.

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