SiteOne Landscape Supply Inc SITE reported its quarterly financial results for the first time ever as a public company on Wednesday morning. The first quarter witnessed a net loss of ($0.85) per share on revenue of $328.5 million, up 45.5 percent year-over-year.
Following the announcement, analysts at Deutsche Bank shared some thoughts on the issue.
In a note issued Wednesday, the firm’s experts think first quarter results and 2016 EBITDA guidance were both in line with expectations. Looking into the second quarter, the analysts pointed out, “a weather pull forward of demand into 1Q combined with poor weather in April/May has hurt organic trends for the first two months of 2Q16.”
Related Link: Every Sell-Side Recommendation On SiteOne Following IPO Quiet Period Expiration
Taking into account how much SiteOne’s business depends on weather, it's likely for some second quarter sales to be lost, but mostly made up in the second half of the year, the report continued. Finally, SiteOne has announced a long-term EBITDA margin target of 10 percent. This, in the analysts' view, “will be an important driver of returns yet to come.”
Deutsche Bank maintains a Buy rating and $33 price target on shares of SiteOne Landscape Supply.
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