NYSE$SITE

SiteOne Landscape Supply Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

SiteOne's Q3 2023 performance reflected net sales growth despite market headwinds and commodity price deflation.

SiteOne Landscape Supply reported a 4% increase in net sales to $1.15 billion for Q3 2023, driven by acquisitions. However, organic daily sales decreased by 2% due to commodity price deflation. Gross margin contracted by 130 basis points to 33.9%, and adjusted EBITDA decreased by 12% to $119.8 million.

  • Net sales increased by 4% to $1.15 billion compared to the prior-year period.
  • Organic Daily Sales decreased 2% due to lower prices for commodity products.
  • Gross margin contracted 130 basis points to 33.9% due to lower prices.
  • Adjusted EBITDA decreased 12% to $119.8 million, with adjusted EBITDA margin contracting 180 basis points to 10.5%.

Headline financials

Total Revenue

$1.15B

Previous: $1.1B+3.9%
EPS (adj)

$1.25

Previous: $1.60-21.9%
Organic Daily Sales Growth

-2.0%

Previous: 15.0%-113.3%
Gross Margin

33.9%

No prior period
Adjusted EBITDA Margin

10.5%

No prior period
Capital Expenditures

-$24.1M

Previous: -$20.5M-17.6%
Free Cash Flow

$33.2M

Previous: $52.8M-37.1%
Net Income

$57.3M

Previous: $73.3M-21.8%
Operating Income

$81.2M

Previous: $102M-20.2%
Gross Profit

$388M

Previous: $389M-0.1%
Cash & Equivalents

$74.9M

Previous: $62.7M+19.5%
Total Assets

$2.99B

Previous: $2.63B+13.6%
Stock-Based Comp

$5M

Previous: $3.5M+42.9%

Revenue & EPS history

SiteOne · Revenue · Quarterly

$1.15B

Q3 2023+3.9%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company expects negative Organic Daily Sales growth in the fourth quarter due to price deflation offsetting positive sales volume growth. Gross margin and Adjusted EBITDA margin are expected to be lower than the prior year, with acquisitions having a dilutive effect on Adjusted EBITDA. The company now expects Adjusted EBITDA to be in the range of $400 million to $410 million.

Tailwinds

  • Achieving consistent sales volume growth despite softer end markets.
  • Expect price deflation to moderate in 2024.
  • Expect the year-over-year variance to improve from the third quarter of this year.

Headwinds

  • Experiencing slightly more commodity price deflation than previously forecasted.
  • Expect Organic Daily Sales growth to be negative in the fourth quarter.
  • Expect gross margin and Adjusted EBITDA margin in the fourth quarter to be lower than the prior year.
  • Acquisitions completed in the third quarter are expected to have a dilutive effect on Adjusted EBITDA during the fourth quarter.
  • Adjusted EBITDA to be in the range of $400 million to $410 million.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.6%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

55%

23 / 42 earnings

Positive

+10.0%

Q2 2021

Best reaction

-15.7%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-15.7%-12.3%-24.1%
Q4 2025+9.7%+5.6%-12.8%
Q3 2025+7.0%+1.2%+9.0%
Q1 2025+0.6%+5.9%+2.4%
Q4 2024+2.8%+9.7%-7.9%
Q3 2024-2.3%+2.1%+7.2%
Q2 2024-2.8%-7.6%-1.2%
Q1 2024-4.2%+0.8%-1.3%
Q4 2023+9.3%+7.6%+10.5%
Q3 2023-7.3%-8.3%+6.8%
Q2 2023-7.6%-5.3%-0.8%
Q1 2023+4.2%+4.4%-2.4%
Q4 2022-2.5%-2.6%-14.9%
Q3 2022-5.4%-3.6%+9.5%
Q2 2022-4.5%-1.0%-13.7%
Q1 2022-7.8%-12.9%-7.1%
Q4 2021-7.4%-9.6%+0.1%
Q3 2021+2.8%+1.3%-1.5%
Q2 2021+10.0%+11.3%+17.9%
Q1 2021+4.0%+8.4%-12.9%
Q4 2020+1.8%+7.2%+16.2%
Q3 2020+0.8%+2.2%+11.6%
Q2 2020+2.1%+9.6%+5.0%
Q1 2020+2.5%-2.2%+23.0%
Q4 2019+8.0%+6.2%-37.6%
Q3 2019+9.8%+11.3%+10.7%
Q2 2019+4.9%+3.5%+13.7%
Q1 2019-11.4%-4.3%-3.6%
Q4 2018-1.5%+0.3%+3.6%
Q3 2018+7.2%+5.5%-2.2%
Q2 2018-0.0%+3.0%+1.4%
Q1 2018+6.3%+7.5%+14.0%
Q4 2017-8.8%-6.0%-6.7%
Q3 2017-0.8%+7.2%+10.6%
Q2 2017-3.0%-2.2%-1.7%
Q1 2017+1.3%-1.1%+2.6%
Q4 2014+9.7%+11.1%+12.9%
Q4 2016+9.7%+11.1%+12.9%
Q3 2016+0.3%+7.4%+10.7%
Q2 2016-2.5%+3.6%+2.9%
Q2 2015-2.5%+3.6%+2.9%
Q1 2015+9.3%+7.0%+20.6%
Q4 2015
Q3 2015
Q3 2014
Q2 2014
Q1 2014

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