Group 1 - Ferguson Enterprises Inc. reported significant earnings growth, beating both top and bottom line expectations, resulting in an almost 8% stock price increase and a year-to-date rally of nearly 30% [1] - The company supplies a wide range of products including plumbing, HVAC, appliances, fire protection, and industrial solutions to various customer segments [2] - Since Jim Cramer's positive remarks about Ferguson, the stock has appreciated by approximately 37.5% [2] Group 2 - The company is part of a broader group of stocks that have been undervalued, particularly after a market shift away from data centers, which is viewed as a mistake [2]

Core Insights - Ferguson Enterprises Inc. (NYSE:FERG) reported a significant increase in net income and sales for the fourth quarter and the full fiscal year, indicating strong financial performance [2][3]. Financial Performance - For the fourth quarter, Ferguson's net income rose by 55% to $700 million from $451 million year-on-year, while net sales increased by 6.9% to $8.5 billion from $7.9 billion [2]. - For the full fiscal year, the company achieved a net profit of $1.856 billion, a 6.9% increase from $1.735 billion the previous year, with net sales growing by 3.8% to $30.76 billion from $29.6 billion [3]. - Ferguson anticipates mid-single digit growth in net sales for the calendar year 2025, building on the $29.8 billion in net sales recorded in 2024 [4]. Corporate Transition - Ferguson Enterprises Inc. will transition to a calendar year reporting system starting January 1, 2026, which will align its fiscal reporting with the calendar year [3]. - The company will continue to report earnings for the period from August 1 to October 31, 2025, on December 9, 2025, before shifting to full-year earnings reports for the calendar year in late February 2026 [4].

Group 1 - Ferguson Enterprises reported fourth-quarter 2024 sales of $8.5 billion, a 6.9% increase from last year, exceeding analyst estimates of $8.41 billion [1] - Adjusted earnings per share were $3.48, surpassing expectations of $2.88 and up 16.8% from the prior year [1] - GAAP diluted EPS was $3.55, reflecting a 59.2% increase from $2.23 [1] Group 2 - For calendar 2025, Ferguson expects mid-single-digit revenue growth and an adjusted operating margin projected between 9.2% and 9.6%, compared to 9.1% in calendar 2024 [2] - Interest expense is forecasted to be between $180 million and $200 million, with capital expenditures planned to range from $300 million to $350 million [2] - The adjusted effective tax rate is expected to be around 26% [2] Group 3 - CEO Kevin Murphy highlighted investments in key growth areas, completion of nine acquisitions, dividend growth, and execution of a share buyback program while maintaining a strong balance sheet [3] - Following the earnings announcement, Ferguson Enterprises shares fell 0.7% to $229.84 [3] Group 4 - Wells Fargo analyst maintained an Overweight rating and raised the price target from $250 to $275 [8] - Baird analyst maintained the stock with an Outperform rating and raised the price target from $260 to $262 [8] - RBC Capital analyst maintained an Outperform rating and raised the price target from $231 to $243 [8]

Core Viewpoint - Ferguson Enterprises' shares increased by as much as 9.8% following the release of mixed Q4 fiscal 2025 results, indicating a recovery from previous negative sentiment related to dividend announcements [1] Earnings, Revenue, and Dividend Support - Q4 revenue rose by 6.9% year over year, reaching $8.5 billion - Adjusted earnings per share increased from $2.98 to $3.48, marking a 17% rise, surpassing analyst expectations of approximately $3.29 per share on sales of around $8.7 billion [2] Management Guidance - Management provided mildly bullish guidance for fiscal year 2026, indicating expectations for widening adjusted operating margins and continued single-digit revenue growth [3] Investor Reassurance - The earnings release and conference call alleviated investor concerns regarding future dividends, despite previous warnings about challenges in cross-border cash movement affecting dividend payouts [4] Business Operations - Ferguson operates primarily in North America, benefiting from stricter air conditioning standards, which offset weaker demand for residential home improvement products in Q4 - Challenges include a slowing new construction market and uncertain long-term macroeconomic trends [6][7] Growth Strategy - The company completed nine acquisitions during the fiscal year and one additional acquisition after the period ended, indicating a commitment to ambitious growth plans [8]

Core Insights - The article discusses the earnings call insights compiled from various transcripts and content available on the Seeking Alpha website, emphasizing the limitations of AI-generated insights [1] Group 1 - The earnings call insights are based on transcripts and other content from Seeking Alpha, highlighting the reliance on AI tools for generating these insights [1] - There is a disclaimer regarding the accuracy, completeness, and timeliness of the earnings call insights, indicating that they have not been curated or reviewed by editors [1] - The insights are intended for informational purposes only and do not account for individual financial situations or objectives [1]

Core Insights - Ferguson Enterprises Inc. is a leading player in the plumbing supplies industry, focusing on a wide range of plumbing and heating products while employing strategic initiatives like acquisitions and financial management to strengthen its market position [1] Financial Performance - On September 16, 2025, Ferguson reported earnings per share of $3.48, exceeding the estimated $3, and revenue of approximately $8.5 billion, surpassing the estimated $8.4 billion, indicating strong sales capabilities [2][6] - The positive market reaction to Ferguson's fiscal fourth-quarter results resulted in a surge in its stock price, with CEO Kevin Murphy highlighting the completion of nine acquisitions throughout the year as a key factor in the company's strong financial performance [3] Valuation Metrics - Ferguson's price-to-earnings (P/E) ratio stands at approximately 26.47, indicating that investors are willing to pay a premium for its earnings, while the price-to-sales ratio is about 1.40, reflecting a favorable market valuation relative to annual sales [4] - The company's enterprise value to sales ratio is around 1.57, and the enterprise value to operating cash flow ratio is approximately 27.20, showcasing its total valuation and ability to cover enterprise value with operating cash flow [5] - Ferguson's debt-to-equity ratio is approximately 1.05, and its current ratio is about 1.64, demonstrating strong liquidity and financial stability [5]

Group 1 - Ferguson Enterprises Inc. (NYSE: FERG) has shown strong performance over the past year, with shares gaining over 20% [1] - The company reported excellent quarterly results, providing positive news for investors [1]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Core Insights - Ferguson Enterprises Inc. reported strong fourth-quarter 2024 results with sales of $8.5 billion, a 6.9% increase year-over-year, surpassing analyst expectations of $8.41 billion [1] - Adjusted earnings per share (EPS) were $3.48, exceeding expectations of $2.88 and reflecting a 16.8% increase from the previous year [1] - GAAP diluted EPS rose 59.2% to $3.55 from $2.23 [1] Financial Performance - Gross margin expanded by 70 basis points to 31.7% [2] - Reported operating profit increased by 14.1% to $925 million, while adjusted operating profit rose 13.4% to $972 million [2] - Adjusted EBITDA reached $1.03 billion [2] Segment Performance - U.S. sales grew 7.1% to $8.1 billion, with non-residential revenue up approximately 15% and residential revenue remaining flat [3] - Adjusted operating profit in the U.S. increased by 14% to $962 million [3] - Canada experienced a 4.8% sales growth to $438 million, with adjusted operating profit rising to $24 million from $22 million [3] Annual Overview - For the full fiscal year ended July 31, sales rose 3.8% to $30.8 billion, with 3.2% organic growth and a 1% contribution from acquisitions [4] - Reported operating profit fell 1.7% to $2.6 billion, while adjusted operating profit increased by 0.6% to $2.84 billion [4] - Reported EPS was $9.32, a 9.3% increase, while adjusted EPS rose 2.6% to $9.94 [4] - Adjusted EBITDA for the year was $3.06 billion [4] Cash Flow and Investments - The company generated $1.9 billion in operating cash flow for the year [5] - Ferguson invested $301 million in nine acquisitions, generating approximately $300 million in annualized revenue [5] - The company repurchased $948 million of stock and declared total dividends of $3.32 per share, a 5% increase from the previous year [5] - Net debt stood at $3.49 billion, with a net debt to adjusted EBITDA ratio of 1.1x [5] Strategic Changes - Ferguson will change its fiscal year-end from July 31 to December 31, with a five-month transition period ending December 31, 2025 [6] - This change aims to align reporting with the calendar year and focus on peak customer demand during the traditional fiscal fourth quarter [6] Future Outlook - The company expects mid-single-digit revenue growth for calendar 2025 [7] - Adjusted operating margin is projected to be between 9.2% and 9.6%, compared to 9.1% in calendar 2024 [7] - Interest expense is forecasted to be between $180 million and $200 million [7] - Planned capital expenditures range from $300 million to $350 million, slightly lower than the previous year [7] - The adjusted effective tax rate is expected to be around 26% [7]

Core Insights - Ferguson Enterprises (NYSE:FERG) shares increased by 9.1% following the release of better-than-expected fiscal fourth-quarter results [2] - The company reported quarterly sales of $8.5 billion, representing a 6.9% increase compared to the same period last year, surpassing Wall Street's consensus forecast of $8.39 billion [2]