SiteOne Landscape Supply Misses Q3 Earnings Expectations, Revenue Sees Modest Increase

ROSWELL, Ga. - SiteOne Landscape Supply, Inc. (NYSE: SITE) reported that its third-quarter earnings fell short of analyst expectations, while revenue slightly exceeded forecasts. The company cited market challenges and price deflation as difficulties during the quarter.

SiteOne announced a third-quarter adjusted earnings per share of $0.97, which was $0.24 below the analyst consensus of $1.21. Revenue for the quarter came in at $1.21 billion, slightly above the anticipated $1.19 billion.

Net income attributable to SiteOne decreased from $57.3 million in the same quarter last year to $44.4 million. Organic Daily Sales fell 1% year-over-year, as price deflation in commodity products more than offset positive volume growth.

Doug Black, Chairman and CEO of SiteOne, stated, "We continued to face market challenges with 3% price deflation during the quarter and a softer repair and remodel market."

The company noted that the maintenance and new construction markets remained resilient, but it continued to experience soft demand primarily in the repair and remodel segment. SiteOne estimates that the impacts of Hurricanes Idalia and Milton negatively affected third-quarter net sales by approximately $15 million.

Looking ahead, SiteOne expects to continue outperforming the market with a low single-digit Organic Daily Sales decline for the remainder of the year. The company plans to consolidate or close 16 branches in the fourth quarter, resulting in a one-time cost of $5 million in adjusted EBITDA.

SiteOne now forecasts adjusted EBITDA for the 2024 fiscal year to be between $370 million and $380 million, which includes the $5 million one-time cost.