Bank of America Securities analyst Robert F. Ohmes maintained a Buy rating on Home Depot HD with a price target of $450 on Tuesday.Ohmes noted that Home Depot announced plans for SRS Distribution to acquire GMS Inc GMS for $110 per share or ~$4.3 billion (an implied EV of ~$5.5 billion).The analyst said GMS is a leading distributor of specialty building products, including drywall, ceilings, and steel framing, in both residential and commercial markets.Also Read: Home Depot’s Distribution Arm Expands With $ ...

Company Overview - Home Depot, Inc. is focused on creating a seamless experience for customers through its "One Home Depot" investment plan, which emphasizes supply chain expansion, technology investments, and digital enhancements [1][10] - The company is positioned to capture market share by enhancing its interconnected retail strategy and robust technology infrastructure, which have improved online conversions [8][9] Acquisition Details - Home Depot has agreed to acquire GMS Inc. for its specialty trade distribution subsidiary, SRS Distribution Inc., with a cash tender offer of $110 per share, totaling an equity value of approximately $4.3 billion and an enterprise value of around $5.5 billion [2][3] - The acquisition is expected to be accretive to adjusted EPS in the first year post-close, excluding synergies, and is anticipated to be completed by fiscal 2025 [4] Strategic Benefits - The acquisition will enhance SRS's distribution capabilities across the US and Canada, complementing its existing business and expanding its footprint [6] - The combined entities will establish a network of over 1,200 locations and a fleet of more than 8,000 trucks, enabling tens of thousands of jobsite deliveries daily [7] Market Performance - Home Depot's shares have increased by 12.1% over the past year, outperforming the industry's growth of 7.8% [11]

Last year, Home Depot acquired SRS Distribution, a distributor for roofing firms and construction projects.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Now, SRS is conducting an acquisition of its own, buying sp ...

GMS (GMS) reported $1.33 billion in revenue for the quarter ended April 2025, representing a year-over-year decline of 5.6%. EPS of $1.29 for the same period compares to $1.93 a year ago. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. The reported revenue represents a surprise of +2.81% over the Zacks Consensus Estimate of $1.3 bill ...

GMS (GMS) Q4 2025 Earnings Call June 18, 2025 08:30 AM ET Company Participants Carey Phelps - VP - IRJohn Turner - President & CEOScott Deakin - SVP & CFOMichael Dahl - Managing Director Conference Call Participants David Manthey - Senior Research AnalystMatthew Bouley - Senior Equity Research AnalystBrian Biros - Equity AnalystKurt Yinger - SVP & Research Analyst Operator Greetings, and welcome to GMS Inc. Fourth Quarter Fiscal Year twenty twenty five Earnings Conference Call. At this time, all participant ...

Q4 FY2025 Earnings Call June 18, 2025 Safe Harbor and Basis of Presentation Forward-Looking Statement Safe Harbor — This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by the Company's use of forward-looking terminology such as "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," or ...

Core Viewpoint - GMS is expected to report a significant decline in quarterly earnings and revenues, indicating potential challenges in its business performance [1]. Financial Performance - Analysts predict GMS will post quarterly earnings of $1.15 per share, a decline of 40.4% year-over-year [1]. - Revenues are forecasted to be $1.3 billion, reflecting a year-over-year decrease of 8.2% [1]. Earnings Estimate Revisions - There have been no revisions in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Key Metrics Analysis - Organic net sales for Wallboard are estimated to decline by 15.3%, contrasting with a 6% increase from the previous year [5]. - Organic net sales for Ceilings are expected to decrease by 0.9%, compared to an 11.4% increase last year [5]. - Organic net sales for Other products/Complementary products are projected to decline by 4.1%, down from a 3.5% increase in the same quarter last year [6]. Market Performance - GMS shares have changed by +2.7% in the past month, compared to a +3.6% move of the Zacks S&P 500 composite [7]. - GMS holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].

Armstrong World Industries (AWI) Q1 2025 Earnings Call April 29, 2025 03:10 PM ET Speaker0 Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Q1 twenty twenty five Armstrong World Industries Incorporated Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. It is now my pleasure to turn the call over to Theresa ...

Armstrong World Industries (AWI) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Theresa Womble - Vice President of Investor Relations & Corporate CommunicationsVic Grizzle - President & CEOChris Calzaretta - Senior VP & CFOZack Pacheco - Equity Research AssociateKeith Hughes - Managing DirectorPhilip Ng - Managing DirectorAdam Baumgarten - Managing DirectorStephen Kim - Senior Managing Director Conference Call Participants Charles Perron-Piché - AnalystRafe Jadrosich - Managing Direct ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.3 billion for Q3 2025, roughly flat compared to the same period a year ago, with organic sales declining by 6.7% [10][25] - Gross margin for the quarter was 31.2%, slightly down from 31.4% in the previous quarter and down from 33% a year ago [10][42] - Adjusted EBITDA decreased by 27.3% year-over-year to $93 million, with adjusted EBITDA margin declining from 10.2% to 7.4% [48][61] Business Line Data and Key Metrics Changes - Wallboard sales dollars were $501.7 million, down 3.6% year-over-year, with a 4.9% decline in volume partially offset by a 1.3% increase in price and mix [33] - Multifamily Wallboard volumes declined by 31.4%, while single-family Wallboard volumes were down 3.7% [34] - Complementary product sales grew 5.3% year-over-year, although organic sales decreased by 4.3% due to soft commercial and multifamily conditions [40] Market Data and Key Metrics Changes - US commercial revenues were down 7.8% organically compared to last year, with the Architectural Billings Index indicating a decline for 17 out of the last 18 months [13] - In Canada, housing sales data showed reductions in market inventory, and residential construction permits surged, indicating more positive conditions compared to the US [32][20] - The company expects single-family housing starts to remain muted for the calendar year due to affordability challenges and economic uncertainty [19] Company Strategy and Development Direction - The company is focusing on four strategic pillars: expanding share in core products, growing complementary products, expanding the platform, and driving improved productivity and profitability [21] - The company is implementing an additional estimated $20 million in annualized cost reductions, bringing total cost reductions to $50 million since the start of the fiscal year [22] - The company aims to maintain a balanced approach to capital allocation, investing in the business while also repaying debt and repurchasing shares [52] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenging demand backdrop is expected to continue through the end of the fiscal year and likely beyond, with no near-term catalysts for improvement [55] - The company remains optimistic about future growth as it navigates current uncertainties, expecting to be well-positioned when demand improves [62] - Management noted that the current macro conditions are anticipated to persist through most of calendar 2025, but they are confident in their strategy and operational adjustments [21][22] Other Important Information - The company recognized a $42.5 million non-cash goodwill impairment charge during the quarter, contributing to a GAAP net loss of $21.4 million compared to net income of $51.9 million in the prior year [46][47] - Cash provided by operating activities was $94.1 million, with free cash flow of $83.1 million, representing 89% of adjusted EBITDA for the quarter [50] Q&A Session Summary Question: Steel pricing outlook and expectations - Management acknowledged that while there may be some inflation in steel prices, it is expected to be post-quarter due to current demand conditions [67][68] Question: April quarter outlook and cost reductions - Management confirmed that the full run rate of the $20 million cost reductions will be realized in the first quarter of fiscal 2026, with some benefits expected in the current quarter [71][76] Question: Deterioration in commercial sectors - Management noted that commercial sectors are experiencing significant declines, particularly in retail and private financing projects, while data centers remain strong [82][84] Question: Ceiling pricing dynamics - Management indicated that the strong performance in ceiling pricing is due to a focus on architectural specialties and successful project closures [100][102] Question: Wallboard pricing and volume growth - Management stated that volume growth across any end market would be beneficial for pricing, with a particular emphasis on the importance of single-family housing for Wallboard demand [109][110] Question: Long-term EBITDA margin expectations - Management reaffirmed that long-term EBITDA margin expectations remain above 10%, with a target of around 9% for the current year despite current challenges [125][126]