Ferguson posts mixed Q4 results, shares dip on revenue miss

NEWPORT NEWS, Va. - Ferguson plc (NYSE:FERG) reported fourth quarter results that beat earnings expectations but missed on revenue, sending shares down 1.74% in premarket trading.



The plumbing and HVAC distributor posted adjusted earnings per share of $2.98, topping the analyst consensus of $2.89. However, revenue of $7.9 billion fell short of estimates of $8.06 billion.



Net sales grew 1.4% YoY to $7.9 billion, with organic revenue declining 0.2%. The company faced modest overall price deflation of approximately 2%, though volumes on an organic basis rose about 2%.



"Once again, our expert associates executed well, going above and beyond to take care of the complex project needs of our specialist pro customers," said CEO Kevin Murphy. "The year finished in line with our expectations. Despite market headwinds and deflation during the year, we continued to outperform our markets, returned to volume growth, expanded gross margins and delivered solid operating margin performance."



For fiscal 2025, Ferguson expects low single digit net sales growth and adjusted operating margin between 9.0% and 9.5%. The guidance assumes Ferguson's markets will be down low single digits, including slightly lower pricing for the year.



The company declared a quarterly dividend of $0.79 per share. Ferguson completed four acquisitions during the quarter and repurchased $213 million in shares.

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Source: Investing.com