Distribution Solutions Earnings: What To Look For From DSGR

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Distribution Solutions Earnings: What To Look For From DSGR

Industrial and safety product distributor Distribution Solutions (NASDAQ:DSGR) will be reporting earnings tomorrow before market open. Here’s what to expect.

Distribution Solutions beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $480.5 million, up 18.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates.

Is Distribution Solutions a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Distribution Solutions’s revenue to grow 19.5% year on year to $497.2 million, in line with the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Distribution Solutions has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Distribution Solutions’s peers in the maintenance and repair distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Fastenal delivered year-on-year revenue growth of 3.4%, meeting analysts’ expectations, and MSC Industrial reported a revenue decline of 4.7%, falling short of estimates by 0.8%. Fastenal traded up 7.3% following the results while MSC Industrial was down 10.3%.

Read our full analysis of Fastenal’s results here and MSC Industrial’s results here.

Investors in the maintenance and repair distributors segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Distribution Solutions is down 6.5% during the same time and is heading into earnings with an average analyst price target of $43 (compared to the current share price of $26.31).

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