| Over a month ago | ||||
Nomura Instinet analyst… Nomura Instinet analyst Michael Wood raised the firm's price target on GMS Inc. to $25 from $17 and keeps a Neutral rating on the shares. The analyst believes a "severe downturn scenario" is now off the table and increased EBITDA estimates for the company. | ||||
Reports Q4 revenue down… Reports Q4 revenue down 1.2% y-o-y to $770.9M, consensus $723.46M. CEO John Turner, Jr., said, "We entered Q4 with strong momentum in line with what we had seen through the first three quarters of fiscal 2020, grounded in our team's focus on effective execution of our strategic priorities. Through mid-March we experienced favorable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March and in April as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses. To date in 1Q21, we have experienced sequential improvement in net sales levels compared to the latter half of Q4 as the majority of the mandated shutdowns have been eased or lifted and as businesses have begun to reopen. On a year-over-year basis, comparable daily sales thus far in 1Q21 are down low single digits, compared to the double-digit year-over-year decline experienced in April." | ||||
| Over a quarter ago | ||||
Catch up on today's… Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Owens Corning (OC) cut to Sector Perform from Outperform at RBC Capital with analyst Mike Dahl seeing outsized risk for the company given its fixed cost base and earnings sensitivity, noting that his new base case scenario now assumes a more severe global impact from COVID-19. 2. GMS Inc. (GMS) cut to Sector Perform from Outperform at RBC Capital with analyst Mike Dahl believing that companies with non-residential U.S. business exposure and relatively larger-ticket R&R demand should see sharper declines with more prolonged recovery trajectories due to the fallout of COVID-19. 3. Shopify (SHOP) downgraded to Market Perform from Outperform at Raymond James amid pandemic with analyst Brian Peterson saying near-term headwinds could create a more challenging near-term narrative for the shares. 4. Twilio (TWLO) downgraded to Neutral from Buy at Rosenblatt with analyst Ryan Koontz cutting Twilio's estimates to reflect the "major decline" expected in G7 nations gross domestic product due to COVID-19 impacts. 5. General Motors (GM) downgraded to Hold from Buy at Deutsche Bank with analyst Emmanuel Rosner seeing additional downside risk for U.S. autos stocks and significant liquidity concerns due to their prolonged production shutdown. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here. | ||||
As previously reported,… As previously reported, RBC Capital analyst Mike Dahl downgraded GMS Inc. to Sector Perform from Outperform with a price target of $15, down from $23. The analyst believes that companies with non-residential U.S. business exposure and relatively larger-ticket R&R demand should see sharper declines with more prolonged recovery trajectories due to the fallout of COVID-19, increasing their earnings risk over the coming quarters. Dahl also cuts his FY21 and FY22 EPS views to $2.34 from $3.27 and to $3.06 from $3.74 respectively. | ||||
RBC Capital analyst Mike… RBC Capital analyst Mike Dahl downgraded GMS Inc. to Sector Perform from Outperform with a price target of $15, down from $23. | ||||
Raymond James analyst Sam… Raymond James analyst Sam Darkatsh lowered the firm's price targets across his distribution coverage in an effort to account for the potential near/intermediate financial impacts from the spread of, and response to, COVID-19, as well as the recent collapse in oil prices. The analyst notes that this is merely an initial attempt to be "directionally" correct with his estimates, as he is still in the early stages of understanding the full extent of the coronavirus, and conditions have been changing day-to-day. The analyst lowered his price target for Foundation Building Materials (FBM) to $18 from $20, for GMS (GMS) to $24 from $30, for HD Supply (HDS) to $38 from $45 and for Wesco (WCC) to $65 from $73. | |
Reports Q3 revenue… Reports Q3 revenue $761.4M, consensus $757.72M. | |
GMS announced that it has… GMS announced that it has acquired Trowel Trades Supply, Inc., a single-location distributor based in Colchester, Vermont. Founded in 1968, Trowel Trades serves residential and commercial customers in the greater Burlington, Vermont metro area and related surrounding markets. | |
Reports Q2 revenue… Reports Q2 revenue $861.9M, consensus $859.95M. CEO John Turner said, "We achieved strong volume performance in the United States, where demand conditions remain solid, while managing continued softness in Canada. We also generated strong cash from operations and free cash flow, and continue to pursue our existing capital allocation priorities, including debt reduction and prudent geographic and market share expansion through acquisitions and greenfields. Moving forward, we remain focused on our strategic priorities which include increased emphasis on organic growth through expanding market share in core products and growing our complementary product lines. We will also continue to pursue strategic acquisitions and greenfield branch openings as we broaden our geographic platform (...)" | |
2019 Stephens Nashville… 2019 Stephens Nashville Investment Conference will be held in Nashville on November 13-15. |