SiteOne Landscape Supply misses Q3 earnings expectations, revenue edges higher

ROSWELL, Ga. - SiteOne Landscape Supply, Inc. (NYSE: NYSE:SITE ) reported third quarter earnings that fell short of analyst estimates, while revenue slightly exceeded expectations. The company cited market headwinds and price deflation as challenges in the quarter.

SiteOne posted adjusted earnings per share of $0.97 for Q3, missing the analyst consensus of $1.21 by $0.24. Revenue came in at $1.21 billion, edging past estimates of $1.19 billion.

Net income attributable to SiteOne decreased to $44.4 million from $57.3 million in the same quarter last year. Organic Daily Sales declined 1% YoY due to price deflation for commodity products, which more than offset positive volume growth.

"During the quarter we continued to face market headwinds with 3% price deflation and a softer repair and remodel market," said Doug Black, SiteOne's Chairman and CEO.

The company noted its maintenance and new construction markets remain resilient, but it continues to experience soft demand, primarily in the repair and remodel segment. SiteOne estimates hurricanes Helene and Milton negatively impacted Q3 net sales by approximately $15 million.

Looking ahead, SiteOne expects to continue outperforming the market with a low single-digit Organic Daily Sales decline for the remainder of the year. The company plans to consolidate or close 16 branches in Q4, resulting in a one-time $5 million charge to adjusted EBITDA.

For fiscal 2024, SiteOne now forecasts adjusted EBITDA between $370 million to $380 million, which includes the $5 million one-time charge.

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Source: Investing.com