GMS (GMS) Q1 Earnings Report Preview: What To Look For

Building materials distributor GMS (NYSE:GMS) will be reporting earnings tomorrow before market open. Here's what to look for.

GMS met analysts' revenue expectations last quarter, reporting revenues of $1.26 billion, up 1.9% year on year. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates and a miss of analysts' operating margin 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 7.5% year on year to $1.40 billion, improving from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.06 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GMS has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.

Looking at GMS's peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Boise Cascade delivered year-on-year revenue growth of 6.5%, beating analysts' expectations by 5.2%, and Core & Main reported revenues up 10.6%, topping estimates by 1.1%. Boise Cascade traded down 6.2% following the results while Core & Main was also down 11.7%.

Read our full analysis of Boise Cascade's results here and Core & Main's results here.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.