Overview

* SiteOne Q2 net sales up 3% but missed analyst expectations

* Adjusted EBITDA rose 8%, beating estimates, per LSEG data

* Company completed acquisition of Green Trade Nursery

Outlook

* Company expects full-year Adjusted EBITDA between $400 mln and $430 mln

* SiteOne anticipates low single-digit Organic Daily Sales growth for rest of year

* Company sees pricing flat in Q3, up 1-2% in Q4

* SiteOne expects softness in new residential construction and repair markets

Result Drivers

* ACQUISITIONS - Acquisitions contributed $40.9 mln to net sales growth, accounting for the entire 3% increase in Q2 sales

* PRICE REALIZATION - Improved price realization and acquisitions drove a 30 basis point increase in gross margin to 36.4%

* SG&A LEVERAGE - Decrease in SG&A as a percentage of net sales by 40 basis points to 23.9% due to efficiency improvements

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.46 $1.47

bln bln (11

Analysts

)

Q2 Net $129 mln

Income

Q2 Beat $226.70 $222.20

Adjusted mln mln (10

EBITDA Analysts

)

Q2 Gross 36.4%

Margin

Q2 15.5%

Adjusted

EBITDA

Margin

Q2 Gross $531.40

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the fishing & farming peer group is "buy"

* Wall Street's median 12-month price target for SiteOne Landscape Supply Inc ( SITE ) is $135.00, about 4.8% above its July 29 closing price of $128.57

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)