Distribution Solutions Q2 revenue rises 11%, beats estimates
Distribution Solutions Q2 revenue rises 11%, beats estimates
Overview
US specialty distributor's Q2 revenue rose 11%, beating analyst expectations
Adjusted EPS for Q2 rose to $0.47, beating analyst expectations
Company to be acquired by LKCM Headwater for $35/share in cash, taking it private
Outlook
Company did not provide specific financial or operational guidance for future periods
Result Drivers
ORGANIC SALES GROWTH - Co said Q2 revenue was primarily driven by organic sales growth of 10.2% with daily sales improvement across all verticals
ACQUISITION IMPACT - Q2 revenue included $4.1 mln from Eastern Valve acquisition completed in Q1
MARGIN PRESSURE - Gross margin decreased due to shifts in customer and vertical sales mix and higher tariff rates, partially offset by pricing benefits
Company press release: ID:nBw97yvQ4a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $557.73 mln | $520.40 mln (3 Analysts) |
Q2 Adjusted EPS | Beat | $0.47 | $0.41 (3 Analysts) |
Q2 EPS |
| $0.18 |
|
Q2 Adjusted EBITDA |
| $53.93 mln |
|
Q2 Adjusted Operating Income |
| $45.22 mln |
|
Q2 Operating Income |
| $27.87 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Distribution Solutions Group, Inc. is $35.00, about 0.6% above its August 5 closing price of $34.80
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Distribution Solutions
See all newsBrief: Distribution Solutions Group Announces Proposed $700 Million Senior Notes Offering
Advisory: Alerts from law firm on Distribution Solutions Group withdrawn
Distribution Solutions Group, Inc. reports results for the quarter ended June 30 - Earnings Summary
Distribution Solutions Q2 revenue rises 11%, beats estimates
Brief: Distribution Solutions Q2 Adjusted EPS USD 0.47