Ferguson Shares Drop 5% After Earnings Miss and Updated Outlook

Core Viewpoint - Ferguson Enterprises Inc. reported first-quarter earnings that fell short of expectations, leading to a decline in share price and an update to full-year guidance [1] Financial Performance - Earnings per share (EPS) for the quarter was $2.84, below the consensus estimate of $2.97 [1] - Revenue increased by 5.1% year-over-year to $8.2 billion, slightly exceeding the estimate of $8.09 billion [1] - The operating margin was reported at 9.9%, reflecting an 80-basis-point adjusted improvement [2] - Gross margin rose to 30.7%, an increase of 60 basis points from the previous year [2] Future Guidance - For the calendar year 2025, the company expects net sales to grow around 5%, an adjustment from earlier guidance of mid-single-digit expansion [3] - Projected adjusted operating margin is now between 9.4% and 9.6%, compared to the previous range of 9.2% to 9.6% [3] - Capital spending is estimated at approximately $350 million, refining the earlier outlook of $300 million to $350 million [3]