Fergusons Fourth Quarter and FullYear Fiscal 2024 Financial Results
Intellectia.AI2024-09-17
Ferguson's Fourth Quarter and Full-Year Fiscal 2024 Financial Results
Ferguson Plc , a leading distributor in the North American construction and infrastructure sector, reported its financial results for the fourth quarter and fiscal year ended July 31, 2024.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | Year-over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $7.9 billion | $7.8 billion | +1.4% | $8 billion |
| Diluted Earnings Per Share (EPS) | $2.23 | $2.85 | -21.8% | $2.86 |
| Adjusted EPS | $2.98 | $2.77 | +7.6% | - |
Interpretation : Ferguson reported a slight increase in total revenue year-over-year but fell short of consensus estimates. The adjusted EPS outperformed the prior year, attributed to increased operating profits and share repurchases, though reported EPS was impacted by non-cash deferred tax charges.
Segment Revenue Performance
| Segment | Revenue Q4 2024 | Year-over-Year Change | Comments |
|---|---|---|---|
| USA | $6.7 billion | +1.3% | Resilient non-residential growth offset a flat residential market. |
| Canada | $1.2 billion | +2.0% | Acquisition-driven growth, despite currency impacts. |
Interpretation : The US segment saw steady performance with growth in non-residential markets, while the Canadian segment benefited from acquisitions. Both segments faced challenges from a softer residential market.
Key Developments and Operational Highlights
- Declared a quarterly dividend of $0.79 per share.
- Completed four acquisitions in Q4, contributing to strategic growth.
- Executed share repurchases totaling $213 million in Q4.
- Implemented a new corporate structure as of August 1, 2024, with headquarters in Newport News, VA.
Commentary from Company Officers
CEO Kevin Murphy stated, "Our associates exhibited strong execution in FY2024, meeting our expectations amidst market headwinds and deflation. We maintained market outperformance, solid profitability, and robust cash flow, supporting our strategic goals of organic and inorganic growth, alongside continued dividend hikes and share buybacks."
Guidance : For fiscal 2025, Ferguson anticipates modest growth with continued market leadership, driven by investments in operational scale and potential opportunities in the aging housing and non-residential sectors.
Dividends and Share Repurchase Program
- Total dividends for the year reached $3.16 per share, a 5% increase over the prior year.
- Ferguson plans to continue its share repurchase program with $900 million remaining for buybacks.
Stock Price Movement
Post-earnings, Ferguson's stock price fell by approximately 3.15%, responding to the shortfall in revenue against analyst expectations and the impacts on reported EPS.
In summary, Ferguson navigated FY2024 with steady strategic execution and forward investments, positioning itself well for anticipated future market growth despite near-term challenges.
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