Industrial and safety product distributor Distribution Solutions (NASDAQ: DSGR) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Distribution Solutions missed analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $478 million, up 14.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Distribution Solutions a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Distribution Solutions’s revenue to grow 10.2% year on year to $484.4 million, slowing from the 16.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Distribution Solutions has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Distribution Solutions’s peers in the maintenance and repair distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Global Industrial delivered year-on-year revenue growth of 3.2%, beating analysts’ expectations by 2%, and Fastenal reported revenues up 8.6%, topping estimates by 0.5%. Fastenal traded up 4.2% following the results.
Read our full analysis of Global Industrial’s results here and Fastenal’s results here.
There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 5.5% on average over the last month. Distribution Solutions is up 6% during the same time and is heading into earnings with an average analyst price target of $37.50 (compared to the current share price of $29.12).
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