SiteOne Landscape Supply (SITE) saw its stock price plummet 5.25% in early trading on Wednesday following the release of its first-quarter earnings report, which revealed wider losses than anticipated and a cautious outlook for the year ahead.
The company reported a Q1 net loss of $0.61 per diluted share, significantly wider than the $0.43 loss recorded in the same period last year and worse than the $0.53 loss expected by analysts. While net sales for the quarter rose to $939.4 million from $904.8 million a year earlier, slightly beating market expectations, investors appeared more concerned with the company's bottom line and future prospects.
Adding to the negative sentiment, SiteOne's management provided a cautious outlook for fiscal year 2025. The company expects overall demand to be flat to slightly down for the year, citing uncertainties from tariffs, inflation, and interest rates that may affect consumer confidence and market demand. With these headwinds, SiteOne anticipates pricing to be flat to slightly up for FY25, potentially limiting growth opportunities. The landscape supply company projected full-year adjusted EBITDA in the range of $400-430 million, reflecting the challenging operating environment ahead.
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