Gross margins continue to perform through acquisitions Whether it's a pause or a longer cycle, we don't know. One of the things we want to keep in mind, though, is we're heading into a down cycle potentially. Additionally, SITE is facing an expected decline in organic sales as mentioned in the last call, stating These conditions had a considerable negative impact on SITE's volume. SITE faced challenges with significant volume declines in western markets due to record rainfall and in northern markets where spring arrived later in 2022. Unfortunately, organic daily sales have actually declined by 2%, which is a tough comparison to the 32% organic sales growth in Q1 2021. In Q1 2023, SITE's net sales growth has slowed with only a 4% increase, and the added revenue is solely from acquisitions with a 7% net sales growth. In my view, SITE is a reliable and sustainable business that continues to execute on its plans well. Despite missing earnings, the market responded positively to SITE's financial performance, resulting in a 6% increase in stock price after the earnings release. SITE recently announced its financial results on May 3rd, with an EPS of -$0.10 which missed the expected earnings by $0.14, but its revenue of $837.4 million beat estimates by $47.6 million. They offer various durable products such as hardscapes, nurseries, and irrigation equipment. ( NYSE: SITE) is a top wholesale distributor of landscaping supplies in the United States and Canada.
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