Industrial and safety product distributor Distribution Solutions (NASDAQ: DSGR) will be reporting results this Thursday before the bell. Here’s what you need to know.
Distribution Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $557.7 million, up 11% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Distribution Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Distribution Solutions’s revenue to grow 7.8% year on year, slowing from the 10.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Distribution Solutions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Distribution Solutions’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Transcat delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 5%, and WESCO reported revenues up 16.6%, topping estimates by 5.1%. WESCO traded down 1.2% following the results.
Read our full analysis of Transcat’s results here and WESCO’s results here.
Investors in the maintenance and repair distributors segment have had steady hands going into earnings, with share prices flat over the last month. Distribution Solutions’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $35).
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