GMS Inc. (NYSE:GMS) Q1 Fiscal 2025 Earnings Overview
- GMS Inc. reported an EPS of $1.93, missing the estimated $2.11, and revenue of approximately $1.45 billion, below the expected $1.48 billion.
- The company's price-to-earnings (P/E) ratio stands at approximately 13.92, indicating moderate investor confidence.
- Challenges such as increased costs and steel price deflation have led to a miss in earnings and sales estimates, alongside a year-over-year decline in margins.
On Thursday, August 29, 2024, GMS Inc. (NYSE:GMS), a key player in the distribution of wallboard and suspended ceiling systems, reported its earnings before the market opened, revealing an earnings per share (EPS) of $1.93. This figure fell short of the estimated $2.11, indicating a discrepancy between expected and actual financial performance. The company's revenue for the period was approximately $1.45 billion, also below the expected $1.48 billion. This report marked the beginning of the fiscal year 2025 for GMS, setting a tone of financial scrutiny as the company navigates through its operational challenges and market expectations.
The earnings call, as detailed by Seeking Alpha, featured key company participants including Carey Phelps, Vice President of Investor Relations; John Turner, President and CEO; and Scott Deakin, Senior Vice President and CFO. The presence of analysts from notable firms such as Stephens, Baird, and RBC Capital Markets underscores the investment community's interest in GMS's financial health and strategic direction. This level of engagement reflects the market's anticipation of how GMS plans to address its current financial challenges and leverage opportunities for growth.
GMS's financial metrics provide a deeper insight into the company's market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 13.92, GMS's shares are trading at nearly 14 times its earnings over the last twelve months, suggesting a moderate level of investor confidence in the company's future earnings potential. The price-to-sales (P/S) ratio stands at about 0.62, indicating that investors are paying 62 cents for every dollar of sales, a metric that offers perspective on the company's valuation relative to its revenue generation. Additionally, the enterprise value to sales (EV/Sales) ratio of roughly 0.91 and the enterprise value to operating cash flow (EV/OCF) ratio of approximately 12.46 further elucidate the company's valuation in relation to its sales and operating cash flow, respectively.
Despite witnessing improving volume trends and benefiting from favorable pricing, GMS faced setbacks due to increased costs and steel price deflation, as highlighted by Zacks Investment Research. These challenges not only led to a miss in both earnings and sales estimates but also contributed to a year-over-year decline in margins. The financial figures and ratios, such as the debt-to-equity (D/E) ratio near 0.88 and the current ratio sitting at about 2.31, reveal a moderate level of debt relative to equity and the company's ability to cover its short-term liabilities with its short-term assets, respectively. These metrics are crucial for investors and analysts in assessing the company's financial stability and operational efficiency amidst the reported challenges.
In summary, GMS's first-quarter fiscal 2025 results reflect a mix of improving and challenging factors that have impacted its financial performance. The detailed financial metrics and the engagement of key company participants and analysts during the earnings call provide a comprehensive view of GMS's current financial health and strategic direction. As the company navigates through increased costs and market fluctuations, its financial ratios and market valuation metrics will continue to be key indicators of its ability to adapt and grow in the competitive distribution market.
| Symbol | Price | %chg |
|---|---|---|
| 6367.T | 17025 | 3.99 |
| ARNA.JK | 600 | 0.83 |
| 002380.KS | 312000 | 0.8 |
| TOTO.JK | 224 | -0.89 |
GMS Inc. (NYSE:GMS) Stock Update and Financial Performance Review
- Stephens upgrades GMS Inc. (NYSE:GMS) to "Overweight" with a "hold" action, following strong Q4 fiscal 2025 results.
- Q4 fiscal 2025 earnings report shows net sales of $1.33 billion and adjusted EPS of $1.29, beating estimates.
- Stock performance sees a significant increase, with shares surging by 28.3% after an unsolicited buyout proposal.
GMS Inc. (NYSE:GMS) is a leading North American distributor of wallboard and suspended ceilings systems. The company serves a wide range of customers, including commercial and residential builders. GMS competes with other major distributors in the construction materials industry, such as Builders FirstSource and Beacon Roofing Supply.
On June 20, 2025, Stephens updated their rating for GMS Inc. (NYSE:GMS) to "Overweight," maintaining their previous grade. At the time, the stock was priced at $101.14, and the action associated with this update was "hold." This rating comes after GMS reported strong fourth-quarter fiscal 2025 results, with net sales of $1.33 billion, surpassing analyst estimates of $1.30 billion. Despite a 5.6% decrease from the previous year, the company's adjusted earnings per share (EPS) of $1.29 exceeded the consensus of $1.11.
John C. Turner, Jr., the president and CEO of GMS, expressed satisfaction with the company's performance, highlighting the solid results achieved despite challenging end-market conditions. This positive outlook is further supported by the company's recent stock performance. GMS shares surged by 28.3%, trading at $103.92, following the announcement of an unsolicited buyout proposal from QXO at $95.20 per share.
The stock for GMS Inc. (NYSE:GMS) is currently priced at $100.85, reflecting a significant increase of $19.84, or 24.49%, over the past year. Today, the stock has fluctuated between a low of $100.27 and a high of $105.14. Over the past year, GMS has reached a high of $105.54 and a low of $65.77. The company's market capitalization stands at approximately $3.87 billion, with a trading volume of 4.24 million shares.
GMS Inc. (NYSE:GMS) Surpasses Earnings and Revenue Estimates
GMS Inc. (NYSE:GMS) is a leading distributor of specialty building products in North America. The company operates within the Zacks Building Products - Retail industry, providing a wide range of construction materials. GMS competes with other major players in the industry, focusing on delivering quality products and services to its customers.
On June 18, 2025, GMS reported earnings per share (EPS) of $1.29, surpassing the estimated $1.15. This marks a 12.17% surprise above expectations, as highlighted by Zacks. However, this EPS is lower than the $1.93 reported in the same quarter last year. In the previous quarter, GMS faced a negative surprise of 33.81%, earning only $0.92 per share against an anticipated $1.39. GMS achieved a revenue of approximately $1.33 billion, exceeding the estimated $1.30 billion by 2.81%. Despite this, the revenue is a slight decrease from the $1.41 billion reported in the same period the previous year.
Over the past four quarters, GMS has exceeded consensus revenue estimates twice, indicating some volatility in its financial performance. The company's financial metrics provide further insight into its valuation. GMS has a price-to-earnings (P/E) ratio of approximately 21.96, showing how much investors are willing to pay per dollar of earnings. The price-to-sales ratio is about 0.57, suggesting a relatively low valuation compared to its sales. Additionally, the enterprise value to sales ratio is around 0.87. GMS's enterprise value to operating cash flow ratio is approximately 12.41, offering insight into its valuation against cash flow from operations.
The company has an earnings yield of about 4.55%, indicating the return on investment. With a debt-to-equity ratio of approximately 1.25, GMS shows a moderate level of financial leverage. The current ratio of around 2.30 suggests a strong ability to cover short-term liabilities with short-term assets.
GMS Inc. (NYSE:GMS) Stock Analysis: A Comprehensive Overview
- David Manthey from Robert W. Baird sets a price target of $93 for GMS Inc. (NYSE:GMS), indicating a potential increase of 22.14%.
- GMS reported quarterly earnings of $1.29 per share, surpassing the Zacks Consensus Estimate but showing a decline from the previous year.
- The company's revenues are projected to be $1.3 billion, with a significant decline in quarterly earnings expected.
GMS Inc. (NYSE:GMS) is a leading North American distributor of wallboard and suspended ceilings systems. The company serves a wide range of customers, including residential and commercial builders, contractors, and remodelers. GMS competes with other major players in the building materials industry, such as Builders FirstSource and Beacon Roofing Supply.
On June 17, 2025, David Manthey from Robert W. Baird set a price target of $93 for GMS. At that time, the stock was priced at $76.14, suggesting a potential increase of 22.14%. This optimistic outlook comes despite GMS reporting a quarterly earnings of $1.29 per share, which, while surpassing the Zacks Consensus Estimate of $1.15, is a decline from the $1.93 per share reported in the same quarter the previous year.
The current stock price of GMS is $73.24, reflecting a decrease of 3.81% or $2.90. Today, the stock has traded between $73.07 and $75.98. Over the past year, GMS has reached a high of $105.54 and a low of $65.77. The company's market capitalization is approximately $2.81 billion, with a trading volume of 927,606 shares on the NYSE.
GMS Inc. (NYSE:GMS) Overview: A Deep Dive into Financial Performance and Market Position
- The consensus price target for GMS Inc. (NYSE:GMS) has slightly declined, indicating a stable yet cautious outlook from analysts.
- Recent earnings reports have not met expectations, with Q3 2025 and Q2 2025 earnings missing the Zacks Consensus Estimate.
- Investor discussions during earnings calls with key company figures and analysts from top firms provide valuable insights into GMS's strategies and market position.
GMS Inc. (NYSE:GMS) is a leading distributor of construction materials, including wallboard, ceilings, and steel framing, serving professional contractors and homebuilders across the U.S. and Canada. With around 300 branches and distribution centers, GMS has a strong foothold in the construction materials industry, competing with other major players like Builders FirstSource and ABC Supply Co.
The consensus price target for GMS has shown a slight decline over the past year, moving from $88.33 to $86.5. This suggests a stable outlook from analysts, with minimal changes in expectations. Despite this stability, RBC Capital analyst Mike Dahl has set a lower price target of $68, indicating a more cautious view on the stock's future performance.
GMS's recent earnings reports have not met expectations, which may have influenced the lower price target set by some analysts. In Q3 2025, the company reported earnings of $0.92 per share, missing the Zacks Consensus Estimate of $1.39. Similarly, in Q2 2025, earnings were $2.02 per share, below the expected $2.26. These shortfalls highlight challenges the company faces in meeting market expectations.
The company's earnings calls, attended by key figures like CEO John Turner and CFO Scott Deakin, provide insights into GMS's strategies and market position. Analysts from firms such as Baird, Truist Securities, and Barclays participate in these calls, offering their perspectives on the company's performance and future prospects. These discussions are crucial for investors to understand the factors influencing GMS's stock price.
Investors should consider the consensus price targets and earnings performance as part of a broader investment strategy. Staying informed about GMS's financial health, market conditions, and growth opportunities in the construction materials sector is essential for making informed investment decisions.
GMS Inc. (NYSE:GMS) Earnings Report Highlights
- GMS Inc. (NYSE:GMS) reported revenue of $1.47 billion, surpassing estimates.
- The company's quarterly earnings were $2.02 per share, missing the Zacks Consensus Estimate.
- Adjusted EBITDA was $152.2 million, with a margin decrease to 10.3%.
GMS Inc. (NYSE:GMS) is a leading distributor of specialty building products in North America. The company provides a wide range of construction materials, including wallboard, ceilings, and insulation. GMS competes with other major distributors in the industry, striving to maintain its market position through strategic growth and operational efficiency.
On December 5, 2024, GMS reported its earnings, revealing a revenue of approximately $1.47 billion, which exceeded the estimated $1.46 billion. This achievement highlights the company's ability to generate sales despite challenging market conditions. Despite the revenue growth, GMS faced challenges in profitability. The company reported quarterly earnings of $2.02 per share, falling short of the Zacks Consensus Estimate of $2.26 per share. This performance also marks a decline from the $2.30 per share earnings reported in the same quarter last year. Net income for the quarter was $53.5 million, or $1.35 per diluted share, down from $81 million, or $1.97 per diluted share, in the previous year.
The company's adjusted EBITDA was $152.2 million, reflecting a decrease of $15.3 million, or 9.2%, with the adjusted EBITDA margin dropping to 10.3% from 11.8%. Cash provided by operating activities amounted to $115.6 million, while free cash flow was $101.5 million, compared to $118.1 million in the previous year. These figures indicate a decline in operational efficiency and cash generation.
GMS's financial ratios provide further insight into its performance. The company has a price-to-earnings (P/E) ratio of approximately 18.56, a price-to-sales ratio of about 0.72, and an enterprise value to sales ratio of around 0.77. The debt-to-equity ratio is approximately 0.24, indicating a relatively low level of debt compared to equity. The current ratio is around 2.23, suggesting a strong ability to cover short-term liabilities with short-term assets.
GMS Inc. (NYSE:GMS) Earnings Report Highlights
- GMS Inc. (NYSE:GMS) reported revenue of $1.47 billion, surpassing estimates.
- The company's quarterly earnings were $2.02 per share, missing the Zacks Consensus Estimate.
- Adjusted EBITDA was $152.2 million, with a margin decrease to 10.3%.
GMS Inc. (NYSE:GMS) is a leading distributor of specialty building products in North America. The company provides a wide range of construction materials, including wallboard, ceilings, and insulation. GMS competes with other major distributors in the industry, striving to maintain its market position through strategic growth and operational efficiency.
On December 5, 2024, GMS reported its earnings, revealing a revenue of approximately $1.47 billion, which exceeded the estimated $1.46 billion. This achievement highlights the company's ability to generate sales despite challenging market conditions. Despite the revenue growth, GMS faced challenges in profitability. The company reported quarterly earnings of $2.02 per share, falling short of the Zacks Consensus Estimate of $2.26 per share. This performance also marks a decline from the $2.30 per share earnings reported in the same quarter last year. Net income for the quarter was $53.5 million, or $1.35 per diluted share, down from $81 million, or $1.97 per diluted share, in the previous year.
The company's adjusted EBITDA was $152.2 million, reflecting a decrease of $15.3 million, or 9.2%, with the adjusted EBITDA margin dropping to 10.3% from 11.8%. Cash provided by operating activities amounted to $115.6 million, while free cash flow was $101.5 million, compared to $118.1 million in the previous year. These figures indicate a decline in operational efficiency and cash generation.
GMS's financial ratios provide further insight into its performance. The company has a price-to-earnings (P/E) ratio of approximately 18.56, a price-to-sales ratio of about 0.72, and an enterprise value to sales ratio of around 0.77. The debt-to-equity ratio is approximately 0.24, indicating a relatively low level of debt compared to equity. The current ratio is around 2.23, suggesting a strong ability to cover short-term liabilities with short-term assets.
