NYSE$SITE

SiteOne Landscape Supply Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

SiteOne finished the year strongly with sales volume growth mostly mitigating commodity price deflation, combined with continued gross margin recovery and tight SG&A management resulting in modest adjusted EBITDA growth.

SiteOne's Q4 2023 net sales increased by 8% to $965.0 million, driven by acquisitions, although organic daily sales decreased by 1% due to commodity price deflation. Gross profit rose by 8%, but gross margin decreased slightly. Net loss was $3.4 million, while adjusted EBITDA increased by 3%.

  • Net sales for the Fourth Quarter 2023 increased to $965.0 million, or 8%, compared to the prior-year period.
  • Organic Daily Sales decreased 1% compared to the prior-year period.
  • Gross profit increased 8% to $326.6 million for the Fourth Quarter 2023 compared to the prior-year period.
  • Adjusted EBITDA increased 3% to $39.9 million for the Fourth Quarter 2023, compared to the prior-year period.

Headline financials

Total Revenue

$965M

Previous: $890M+8.4%
EPS (adj)

-$0.08

Previous: -$0.02-300.0%
Organic Daily Sales Growth

-1.0%

Previous: 21.0%-104.8%
Gross Margin

33.8%

No prior period
Adjusted EBITDA Margin

4.1%

No prior period
Capital Expenditures

-$6.6M

Previous: $8.3M-179.5%
Net Income

-$3.4M

Previous: $27.5M-112.4%
Operating Income

-$3.4M

Previous: $35.3M-109.6%
Gross Profit

$327M

Previous: $282M+15.7%
Stock-Based Comp

$5M

Previous: $3.1M+61.3%

Revenue & EPS history

SiteOne · Revenue · Quarterly

$965M

Q4 2023+8.4%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

SiteOne expects commodity price deflation to moderate in the first half of 2024 with positive contribution from pricing in the second half. Overall, prices are expected to be down 1% to 2% for the full year 2024. Adjusted EBITDA is expected to be in the range of $420 million to $455 million.

Tailwinds

  • Recovering residential market
  • Steady maintenance
  • Resilient commercial, repair and remodel markets
  • Commercial initiatives
  • SG&A management

Headwinds

  • Commodity price deflation in the first half of 2024
  • Overall prices expected to be down 1% to 2% for the full year 2024
  • Uncertain economic conditions
  • Potential supply chain disruptions
  • Increased operating costs

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 Q4 2023

Historical avgQ4 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

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