GMS (NYSE:GMS) is gearing up to announce its quarterly earnings on Thursday, 2024-12-05. Here's a quick overview of what investors should know before the release.
Analysts are estimating that GMS will report an earnings per share (EPS) of $2.19.
Investors in GMS are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings History Snapshot
During the last quarter, the company reported an EPS missed by $0.21, leading to a 2.11% increase in the share price on the subsequent day.
Here's a look at GMS's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.14 | 2.04 | 1.61 | 2.26 |
| EPS Actual | 1.93 | 1.93 | 1.60 | 2.30 |
| Price Change % | 2.0% | -3.0% | 1.0% | 3.0% |
Stock Performance
Shares of GMS were trading at $102.68 as of December 03. Over the last 52-week period, shares are up 46.21%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Opinions on GMS
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on GMS.
Analysts have given GMS a total of 4 ratings, with the consensus rating being Neutral. The average one-year price target is $96.25, indicating a potential 6.26% downside.
Understanding Analyst Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of MSC Industrial Direct Co, Rush Enterprises and McGrath RentCorp, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- For MSC Industrial Direct Co, analysts project an Neutral trajectory, with an average 1-year price target of $83.0, indicating a potential 19.17% downside.
- The consensus among analysts is an Outperform trajectory for Rush Enterprises, with an average 1-year price target of $69.0, indicating a potential 32.8% downside.
- For McGrath RentCorp, analysts project an Outperform trajectory, with an average 1-year price target of $127.67, indicating a potential 24.34% upside.
Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for MSC Industrial Direct Co, Rush Enterprises and McGrath RentCorp, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GMS | Neutral | 2.76% | $451.56M | 3.91% |
| MSC Industrial Direct Co | Neutral | -8.03% | $390.61M | 3.99% |
| Rush Enterprises | Outperform | -4.27% | $379.04M | 3.87% |
| McGrath RentCorp | Outperform | 9.55% | $123.98M | 14.58% |
Key Takeaway:
GMS ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. GMS has the lowest return on equity compared to its peers.
All You Need to Know About GMS
GMS Inc is a distributor of specialty building products including wallboard, suspended ceiling systems, ceilings, steel framing, and other complementary building products. The company serves its products to commercial new construction, commercial repair and remodel, residential new construction, and residential repair and remodel (R&R). Its geographical segment is Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western and Canada, and Ames. The company generates maximum revenue from Wallboard products.
Key Indicators: GMS's Financial Health
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, GMS showcased positive performance, achieving a revenue growth rate of 2.76% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.95%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): GMS's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.91%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): GMS's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.5%, the company may face hurdles in achieving optimal financial returns.
Debt Management: GMS's debt-to-equity ratio is below the industry average at 1.14, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for GMS visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
