Industrial and safety product distributor Distribution Solutions (NASDAQ: DSGR) will be reporting results this Thursday before market open. Here’s what to look for.
Distribution Solutions beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $502.4 million, up 14.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Distribution Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Distribution Solutions’s revenue to grow 7.2% year on year to $501.5 million, in line with the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 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. Distribution Solutions has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by -0.1% on average.
Looking at Distribution Solutions’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Global Industrial delivered year-on-year revenue growth of 3.3%, missing analysts’ expectations by 1%, and MSC Industrial reported revenues up 2.7%, topping estimates by 1.5%. MSC Industrial traded up 1.1% following the results.
Read our full analysis of Global Industrial’s results here and MSC Industrial’s results here.
There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 3.1% on average over the last month. Distribution Solutions is up 3.3% during the same time and is heading into earnings with an average analyst price target of $38.50 (compared to the current share price of $30.07).
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