Shares of Ferguson Plc., a leading distributor of plumbing and heating products, plunged 10.41% in pre-market trading on Tuesday after the company reported disappointing fiscal first-quarter 2025 earnings, missing analysts' expectations on both the top and bottom lines.
The British company posted adjusted earnings per share of $2.45, falling short of the consensus estimate of $2.62 by 6.49%. Revenue for the quarter came in at $7.772 billion, narrowly missing expectations of $7.831 billion.
The weaker-than-expected results were primarily attributed to continued weakness in certain commodity-related categories, which drove overall price deflation of around 2%. Additionally, higher costs associated with volume growth and continued investments in core capabilities weighed on Ferguson's profitability during the quarter.
Despite the disappointing performance, Ferguson reaffirmed its fiscal 2025 guidance, projecting low single-digit net sales growth. However, investors appeared concerned about the company's ability to navigate the challenging macroeconomic environment, leading to the sharp sell-off in the stock.
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