Ferguson PLC Reports 3% Sales Growth Amid Market Challenges

Story Highlights
  • Ferguson PLC saw a 3% sales increase to $6.9 billion, driven by market outperformance.
  • The company adjusted its full-year operating margin guidance to 8.3%-8.8% amid operational streamlining.
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Ferguson PLC Reports 3% Sales Growth Amid Market Challenges

Ferguson PLC ( (FERG) ) has shared an update.

Ferguson PLC reported a 3% increase in sales for the second quarter, reaching $6.9 billion, driven by market outperformance despite challenging market conditions. The company experienced a 5% growth in sales volume, which was partially offset by a 2% deflation. The gross margin decreased by 70 basis points to 29.7%, and the operating margin was 6.0% (6.5% on an adjusted basis). Ferguson completed one acquisition and signed an agreement to acquire a leading distributor in the Northeast, while also increasing its share repurchase program by $1 billion. The company reaffirmed its full-year revenue guidance of low single-digit growth but adjusted its operating margin expectations to 8.3% to 8.8%, highlighting efforts to streamline operations for future growth.

More about Ferguson PLC

Ferguson PLC operates in the distribution industry, focusing on providing plumbing and heating products, as well as building materials. The company serves both residential and non-residential markets, catering to specialist professional customers with complex project requirements.

YTD Price Performance: -6.47%

Average Trading Volume: 78,605

Technical Sentiment Consensus Rating: Hold

Current Market Cap: £25.68B

For a thorough assessment of FERG stock, go to TipRanks’ Stock Analysis page.

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