NYSE$GMS

Gms Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Delivered solid results with net sales, net income, and Adjusted EBITDA exceeding expectations due to strong commercial and multi-family activity.

GMS Inc. reported solid results for Q2 2024, with net sales of $1.4 billion. Strong commercial and multi-family activity offset a steeper than anticipated steel pricing decline and reduced single-family demand. Net income decreased to $81.0 million, or $1.97 per diluted share, while Adjusted EBITDA decreased to $167.6 million.

  • Net sales decreased 0.7% to $1.4 billion compared to the prior year quarter.
  • Commercial and multi-family construction drove volume increases in Ceilings, Steel Framing and Complementary Products.
  • Gross profit decreased $5.9 million, or 1.3%, compared to the second quarter of fiscal 2023 due to deflationary dynamics in steel pricing.
  • Net income decreased 21.5% to $81.0 million, or $1.97 per diluted share.

Headline financials

Total Revenue

$1.42B

Previous: $1.43B-0.7%
EPS (adj)

$2.30

Previous: $2.79-17.6%
Gross Margin

32.3%

Previous: 32.5%-0.6%
Adjusted EBITDA

$168M

Previous: $196M-14.3%
SG&A Expense

$301M

Previous: $19.50+1543076823.1%
Net Debt / Adj. EBITDA

1.5

Previous: 1.6-6.3%
Capital Expenditures

-$16M

Previous: $10.7M-249.2%
Free Cash Flow

$102M

Previous: $96.5M+5.8%
Net Income

$81M

Previous: $103M-21.5%
Operating Income

$127M

Previous: $153M-17.4%
Gross Profit

$458.60

Previous: $465M-100.0%
Cash & Equivalents

$76.5M

Previous: $124M-38.4%
Total Assets

$3.31B

Previous: $3.25B+2.1%
Stock-Based Comp

$5.7M

Previous: $7.35M-22.5%

Revenue & EPS history

GMS · Revenue · Quarterly

$1.42B

Q2 2024-0.7%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company anticipates continued growth in the multi-family end market through the end of fiscal 2024, expects commercial demand to continue at its current pace, and is optimistic about improving single-family activity.

Tailwinds

  • Backlog in multi-family construction to drive continued growth through the end of fiscal 2024.
  • Commercial demand is expected to continue its current pace of activity over the next few quarters.
  • Easing of mortgage rates may improve single-family activity.
  • Limited supply of existing homes for sale may improve single-family activity.
  • Favorable demographics seem to be setting up improved conditions for single-family activity, particularly as we look out to fiscal 2025.

Headwinds

  • Multi-family growth is expected to occur at declining year-over-year rates.
  • Potential headwinds from tightened credit conditions may impact commercial demand.
  • Single-family demand is comparatively reduced versus the prior year.
  • Market conditions are fluid.
  • Steel price deflation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

-0.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+7.0%

Avg return

30 days after

45%

19 / 42 earnings

Positive

+24.8%

Q1 2020

Best reaction

-17.5%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026
Q1 2026+0.0%+0.1%
Q4 2025+11.5%+38.0%+51.0%
Q3 2025-7.5%-10.7%-8.4%
Q2 2025-5.1%-7.2%-17.9%
Q1 2025-4.8%-7.9%-0.4%
Q4 2024-9.0%-11.0%+1.0%
Q3 2024+0.7%-1.1%+8.0%
Q2 2024-0.7%+8.3%+15.7%
Q1 2024-4.7%
Q4 2023+0.4%
Q3 2023-0.5%
Q2 2023+8.8%
Q1 2023-4.5%
Q4 2022+13.9%
Q3 2022-13.6%
Q2 2022+0.4%
Q1 2022+3.6%
Q4 2021+12.2%
Q3 2021+7.7%
Q2 2021-9.4%
Q1 2021-11.5%
Q4 2020+3.5%
Q3 2020-4.4%
Q2 2020-3.1%
Q1 2020+24.8%
Q4 2019+17.5%
Q3 2019-17.5%
Q2 2019-5.1%
Q1 2019-6.4%
Q4 2018-12.3%
Q3 2018+5.1%
Q2 2018-1.1%
Q1 2018+8.7%
Q4 2015+1.4%
Q4 2017-10.8%
Q3 2016+3.1%
Q3 2017+3.1%
Q2 2016-1.8%
Q2 2017-1.8%
Q1 2017-3.8%
Q1 2016-3.8%
Q4 2016+3.7%
Q3 2015
Q2 2015
Q1 2015

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro