DSGR Earnings Prediction
The chart below shows how DSGR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DSGR sees a -1.90% change in stock price 10 days leading up to the earnings, and a +1.82% change 10 days following the report. On the earnings day itself, the stock moves by -0.22%. This data can give you a slight idea of what to expect for the next quarter's release.
DSGR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
468.02M
6.63%
6.48%
Gross Margin
33.94%
2.54%
-1.54%
Operating Margin
4.05%
40.14%
25.78%
Net Margin
4.68%
1400.00%
988.37%
EPS
0.46
1633.33%
1050.00%
No Data Available
DSGR Earnings Analysis
Distribution Solutions Group, Inc. Common Stock Corporation (DSGR.O) Earnings Conference Call
Positive
Quarterly Sales Surge: 1. Record Quarterly Sales: DSG reported record quarterly sales of $468 million, representing a 6.6% increase compared to the same quarter last year, driven by $38.1 million from 2024 acquisitions.
Adjusted EBITDA Improvement: 2. Improved Adjusted EBITDA: The company generated adjusted EBITDA of $49.1 million, up 12.4% year-over-year, with an adjusted EBITDA margin of 10.5%, reflecting a 50 basis points improvement from the prior year.
Cash Flow Efficiency: 3. Strong Cash Flow Conversion: DSG achieved a trailing 12-month free cash flow conversion of approximately 90%, indicating robust cash generation capabilities.
Sales Territory Expansion: 4. Expansion of Sales Territories: The company identified 134 new sales territories, enhancing revenue opportunities and supporting a goal of increasing the sales rep count to 900 by year-end.
Strategic Acquisition Impact: 5. Successful Acquisitions: DSG announced three strategic acquisitions, including Source Atlantic, ConRes, and TCR, which collectively enhance its market position and are expected to drive future revenue growth.
Negative
Organic Sales Decline: 1. Decline in Organic Sales: Organic sales decreased by 2.1% compared to the previous year, indicating a downturn in core business performance despite overall sales growth.
Lawson Segment Decline: 2. Weak Performance in Lawson Segment: Lawson's organic average daily sales fell by 10%, primarily due to a reduced sales rep count and challenges in federal government orders, which accounted for about 50% of the decline.
Margin Impact from Acquisition: 3. Margin Compression from Acquisitions: The acquisition of Source Atlantic negatively impacted net margins by approximately 20 basis points, highlighting the financial strain from integrating new businesses.
Market Contraction Challenges: 4. Challenging Market Conditions: The U.S. manufacturing Purchasing Managers Index (PMI) remains below 50, signaling contraction in the market, which poses ongoing challenges for revenue growth.
Sales Decline in Electronics: 5. TestEquity Sales Decline: TestEquity reported a 7.4% decline in daily sales due to headwinds in the electronics assembly market, reflecting ongoing softness in the electronic production supply end market.
DSGR FAQs
How does DSGR typically perform around its earnings report dates?
Is Distribution Solutions Group, Inc. (DSGR) Q3 2024 Earnings Call Summary positive or negative?
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DSGR Earning Call Sentiment
Distribution Solutions Group, Inc. (DSGR) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DSGR.O
-1.55%Positive
The earnings call summary indicates positive financial performance, with a 6.6% revenue increase driven by acquisitions, improved EBITDA margins, and strong free cash flow. The acquisition strategy and shareholder return plan are well-received, and the Q&A highlights optimism in market recovery and sales force expansion. Despite some vague responses, the overall sentiment is positive, with a focus on growth and efficiency. The market cap suggests a moderate reaction, leading to a 'Positive' prediction (2% to 8%) over the next two weeks.
