Wolseley: Q3 performance slightly disappointing.
(CercleFinance.com) - British plumbing supplies group Wolseley posted a 6.
6% like-for-like growth in quarterly revenue, helped by strong performance in the US.
Ferguson, the company's US plumbing and heating business, saw revenue grow by 8.5% like-for-like in Q3 to 30 April.
However, the growth in operating profit did not match the high sales growth as costs increased fairly rapidly in the US, with margins declining from 8.5% to 7.6%, analysts at Liberum said.
Listed in London, the shares were down 3% at 4,740 pence after these results.
"We believe that Wolseley's shares should outperform as they re-rate as the group becomes a purer play around its leading US business," commented Liberum, which has a "buy" rating on the stock.
Since 1982, when Wolseley acquired Ferguson, the business has grown revenue from 142 million dollars to 13.8 billion dollars.
In March Wolseley said that the group intends to change its name to Ferguson.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
6% like-for-like growth in quarterly revenue, helped by strong performance in the US.
Ferguson, the company's US plumbing and heating business, saw revenue grow by 8.5% like-for-like in Q3 to 30 April.
However, the growth in operating profit did not match the high sales growth as costs increased fairly rapidly in the US, with margins declining from 8.5% to 7.6%, analysts at Liberum said.
Listed in London, the shares were down 3% at 4,740 pence after these results.
"We believe that Wolseley's shares should outperform as they re-rate as the group becomes a purer play around its leading US business," commented Liberum, which has a "buy" rating on the stock.
Since 1982, when Wolseley acquired Ferguson, the business has grown revenue from 142 million dollars to 13.8 billion dollars.
In March Wolseley said that the group intends to change its name to Ferguson.
Copyright (c) 2017 CercleFinance.com. All rights reserved.