Canada's Richelieu Hardware Q2 sales miss estimates

Overview

• Richelieu Hardware fiscal Q2 sales rise 6.4% but miss analyst expectations, per LSEG data

• Co completed two acquisitions, adding over C$53 mln in annualized sales

• EBITDA margin at 10.8%, impacted by acquisitions and integration costs

Result Drivers

• U.S. SALES GROWTH - U.S. market drove a significant 11.7% sales increase, aided by price adjustments for new tariffs, per CEO Richard Lord

• ACQUISITIONS - Two new acquisitions contributed to revenue growth but impacted margins due to integration costs

• CANADIAN MARKET STABILITY - Despite challenging conditions in Ontario, Canadian sales remained stable year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Richelieu Hardware Ltd is C$37.50, about 2.1% above its July 9 closing price of C$36.70

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nCNWjQkbRa