The chart below shows how GMS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GMS sees a +3.37% change in stock price 10 days leading up to the earnings, and a -1.86% change 10 days following the report. On the earnings day itself, the stock moves by -2.49%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Growth: GMS Inc. reported a strong revenue growth of 10% year-over-year despite facing challenging market conditions.
Market Share Expansion: The company successfully expanded its market share in key regions, indicating effective strategic initiatives.
Gross Margin Stability: GMS Inc. maintained a solid gross margin of 25%, showcasing operational efficiency and cost management.
Long-Term Growth Strategy: The management expressed confidence in the long-term growth strategy, highlighting ongoing investments in technology and infrastructure.
Future Revenue Potential: The company has a robust pipeline of projects, which is expected to drive future revenue growth.
Negative
Earnings Miss Reported: GMS Inc. misses on earnings expectations with reported EPS of $0.92, significantly below the expected $1.39.
Performance Below Expectations: The company faced a challenging macro environment, leading to overall performance that came in below expectations.
Deteriorating Demand Impact: Demand conditions deteriorated meaningfully starting in December, impacting sales volumes and gross margin compared to the prior year.
Market Activity Slowdown: General affordability issues and tight lending conditions contributed to project delays and slower activity in end markets.
Negative Revenue Impact: An estimated $20 million negative revenue impact was attributed to weather and holiday timing, further exacerbating the situation.
GMS Inc. (NYSE:GMS) Q3 2025 Earnings Call Transcript
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