Patrick Industries Q1 Earnings Exceed Estimates, Shares Down 7.3% YTD

Patrick Industries (PATK) Q1 earnings of $1.11 per share beat Zacks Consensus Estimate of $0.98 per share, a 13.27% surprise. Revenues of $1 billion exceeded estimates by 4.11%. The company has surpassed consensus EPS estimates three times over the last four quarters. Patrick Industries shares have lost about 7.3% since the beginning of the year. The Zacks Rank is #4 (Sell) due to an unfavorable estimate revisions trend.

Patrick Industries Inc. (PATK) reported strong financial results for Q1 2025, with earnings per share (EPS) of $1.11, surpassing the Zacks Consensus Estimate of $0.98 per share by 13.27%. The company's revenue of $1 billion also exceeded estimates by 4.11%, reaching $1 billion compared to the expected $960.2 million. This marks the third consecutive quarter where Patrick Industries has surpassed consensus EPS estimates [1].

The company's stock reacted positively to the earnings report, rising 5.01% in pre-market trading. This increase is notable given the stock's 52-week range of $67.72 to $98.9 and the broader market's volatility. The stock's beta of 1.47 suggests higher volatility compared to the broader market, emphasizing the importance of staying informed with professional-grade analytics and real-time updates [1].

Patrick Industries' Q1 2025 EPS of $1.11 exceeded forecasts by 14%, while revenue reached $1 billion, a 7% increase year-over-year. The company's net sales increased by 7% year-over-year, and net income rose by 9% to $38 million. This growth was supported by improvements in gross margin and effective cost management strategies. The company also completed two acquisitions and repurchased $8.5 million of stock [1].

Key financial highlights include:
- Revenue: $1 billion, up 7% year-over-year
- Earnings per share: $1.11, including $0.05 from convertible notes
- Gross margin: 22.8%, a 90 basis point increase year-over-year
- Operating margin: 6.5% on a GAAP basis
- EBITDA: $108 million, up 9% year-over-year
- Cash from operations: $40 million

The company provided optimistic guidance for the remainder of 2025, expecting full-year adjusted operating margins between 7% and 7.3%, operating cash flow of $350 to $370 million, and capital expenditures of $70 to $80 million. The effective tax rate is expected to be between 24% and 25% [1].

Despite the positive earnings report, Patrick Industries shares have lost about 7.3% since the beginning of the year. The Zacks Rank is #4 (Sell) due to an unfavorable estimate revisions trend [2].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-patrick-industries-beats-q1-2025-eps-estimates-93CH-4017398
[2] https://www.zacks.com