Building materials distributor GMS (NYSE:GMS) will be reporting results tomorrow before the bell. Here’s what to expect.
GMS missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $1.45 billion, up 2.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income 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 grow 3% year on year to $1.46 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.19 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 twice over the last two years.
Looking at GMS’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boise Cascade’s revenues decreased 6.6% year on year, meeting analysts’ expectations, and Beacon Roofing Supply reported revenues up 7.3%, in line with consensus estimates. Boise Cascade traded up 3.4% following the results while Beacon Roofing Supply was down 3.6%.
Read our full analysis of Boise Cascade’s results here and Beacon Roofing Supply’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 6.7% on average over the last month. GMS is up 9.8% during the same time and is heading into earnings with an average analyst price target of $93.89 (compared to the current share price of $102.68).
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