Ferguson, a distributor of plumbing and heating supplies, saw its stock rise by as much as 4.9% after reporting better-than-expected results. The company’s net income for the fiscal fourth quarter rose to $584 million, or $2.85 per share, compared to $580 million, or $2.72 per share, in the same period last year. Adjusted earnings per share of $2.77 also surpassed analysts’ consensus estimate of $2.46. However, sales declined 1.7% to $7.84 billion, or 5.3% on an organic basis, excluding the effects of foreign exchange. Despite the challenging market conditions, Ferguson’s management expects net sales for the full-year 2024 to remain roughly flat with the previous year’s figures.
With its strong performance, Ferguson beat Wall Street’s expectations, leading to a significant increase in its stock value. The company’s net income for the fiscal fourth quarter surpassed the previous year’s figures, reaching $584 million, or $2.85 per share. Moreover, the adjusted earnings per share of $2.77 exceeded analysts’ consensus estimate of $2.46. However, Ferguson experienced a decline in sales, with a 1.7% decrease to $7.84 billion, or a 5.3% decline on an organic basis. Despite these challenges, the company’s management remains optimistic, projecting that net sales for the full-year 2024 will be similar to the previous year’s performance.
Kevin Murphy, CEO of Ferguson, acknowledged the difficult market conditions, particularly in the first half of the fiscal year compared to strong previous-year comparables. However, Murphy highlighted the company’s balanced end market exposure, which positions them well to capitalize on emerging long-term trends such as non-residential megaprojects. Despite the challenging backdrop, Ferguson’s management remains confident in their ability to leverage structural tailwinds and achieve steady growth in the upcoming year.
