SiteOne Q2 sales slightly miss estimates on soft demand
SITE•Full-year outlook and analyst view
SiteOne expects full-year Organic Daily Sales growth to be flat to up 1%. The company sees full-year Adjusted EBITDA between $425 million and $455 million, including extra week impact, and expects pricing to remain up 3% for the remainder of the year.
The current average analyst rating on the shares is buy, with 9 strong buy or buy, 4 hold, and no sell or strong sell recommendations. Wall Street's median 12-month price target for SiteOne Landscape Supply Inc is $154.00, about 48.8% above its July 28 closing price of $103.47. The stock recently traded at 22 times the next 12-month earnings versus a P/E of 29 three months ago.
Demand softness and pricing drive results
SiteOne said organic sales growth was limited by weaker demand in new residential construction and repair and upgrade markets.
Acquisitions contributed 3% to net sales growth in the quarter. Gross margin improvement was driven by higher price realization and commercial initiatives, partly offset by higher freight and distribution costs and commodity deflation.
