=NEWPORT NEWS, Va. - Ferguson plc (NYSE:FERG) reported first quarter earnings that fell short of analyst expectations, sending shares down 7% in early trading. The plumbing and heating products distributor saw modest sales growth but faced headwinds from commodity price deflation.
Ferguson posted adjusted earnings per share of $2.45 for the quarter, missing the analyst consensus of $2.88. Revenue came in at $7.77 billion, below estimates of $8.07 billion but up 0.8% YoY. Sales volume grew 3%, partially offset by approximately 2% deflation.
"Our associates remained focused on execution, delivering revenue growth in the quarter, despite continued market headwinds and commodity price deflation," said CEO Kevin Murphy. He noted the year has started largely as expected, with the company's balanced business mix providing confidence in continued market outperformance.
Gross margin declined 10 basis points YoY to 30.1%. Operating margin was 8.6%, or 9.1% on an adjusted basis. The company maintained its fiscal 2025 guidance for modest full year revenue growth with continued outperformance.
Ferguson declared a quarterly dividend of $0.83 per share, a 5% increase over the prior year. The company completed one acquisition during the quarter and another subsequently, while repurchasing $256 million in shares.
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