Building materials distributor GMS (NYSE:GMS) will be reporting results tomorrow before market open. Here’s what you need to know.

GMS beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.47 billion, up 3.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.

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

This quarter, analysts are expecting GMS’s revenue to grow 2.7% year on year to $1.29 billion, in line with the 1.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 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. GMS has missed Wall Street’s revenue estimates five times over the last two years.

Looking at GMS’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Boise Cascade’s revenues decreased 4.7% year on year, missing analysts’ expectations by 0.7%, and Beacon Roofing Supply reported revenues up 4.5%, falling short of estimates by 1.1%. Boise Cascade traded down 8.1% following the results while Beacon Roofing Supply’s stock price was unchanged.

Read our full analysis of Boise Cascade’s results here and Beacon Roofing Supply’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the industrial distributors stocks have shown solid performance, the group has generally underperformed, with share prices down 9.7% on average over the last month. GMS is down 3.3% during the same time and is heading into earnings with an average analyst price target of $98.22 (compared to the current share price of $80.50).

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