Stock News Buzz: GMS Inc (NYSE: GMS)

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On 17 April 2020, GMS Inc (NYSE: GMS) spotted trading -54.75% off 52-week high price. On the other end, the stock has been noted 41.22% away from the low price over the last 52-weeks. The stock changed 8.99% to recent value of $14.67. The stock transacted 389,371 shares during most recent day however it has an average volume of 467.55K shares.

GMS Inc. (GMS) recently stated financial results for the third quarter of fiscal 2020 ended January 31, 2020.

Third Quarter Fiscal 2020 Highlights

Net sales of $761.4M increased 5.2% from $723.9M in the third quarter of the previous fiscal year. Organic net sales increased 3.8% year over year.

Stated net income of $10.9M, or $0.25 per diluted share, contrast to $5.8M, or $0.14 per diluted share, in the third quarter of the previous fiscal year.

Adjusted net income of $22.2M, or $0.52 per diluted share, contrast to $17.3M, or $0.41 per diluted share, in the third quarter of the previous fiscal year.

Adjusted EBITDA of $62.7M, or 8.2% of net sales, contrast to Adjusted EBITDA of $59.7M, or 8.2% of net sales, in the third quarter of the previous fiscal year.

The company completed one acquisition and two greenfield location openings during the third quarter of fiscal 2020.

Net leverage was reduced to 3.3 times as of the end of the third quarter of fiscal 2020 from 3.5 times as of the end of the second quarter of fiscal 2020.

Cash provided by operating activities and free cash flow for the third quarter of fiscal 2020 totaled $65.4M and $59.2M, respectively, representing increases of 9.5% and 6.6%, respectively, from the third quarter of fiscal 2019.

Cash provided by operating activities and free cash flow for the first nine months of fiscal 2020 totaled $135.4M and $114.5M, respectively, representing increases of 28.4% and 24.4%, respectively, from the first nine months of fiscal 2019.

Gross profit of $253.5M increased 8.2% from $234.2M in the third quarter of fiscal 2019. Gross margin of 33.3% increased 90 basis points from 32.4% a year ago primarily Because of favorable price-cost dynamics resulting from both higher volume purchases in multiple product groups and other purchasing initiatives. Acquisition-related purchasing synergies and mix also contributed to gross margin improvement.

Selling, general and administrative (SG&A) expense as a percentage of net sales was 25.4% for the quarter contrast to 24.6% in the third quarter of fiscal 2019. Adjusted SG&A expense as a percentage of net sales was 25.2% contrast to 24.2% in the previous year quarter. The 100 basis point increase in Adjusted SG&A as a percentage of sales resulted from the continuation of year-over-year declines in the selling prices of certain of our products and continuing inflationary cost pressures. In addition, the Company continued to make ongoing investments in greenfield locations and business initiatives intended to grow sales, leverage scale and drive profitability.

Net income of $10.9M, or $0.25 per diluted share, contrast to $5.8M, or $0.14 per diluted share, in the third quarter of fiscal 2019. Adjusted net income of $22.2M, or $0.52 per diluted share, contrast to $17.3M, or $0.41 per diluted share, in the third quarter of fiscal 2019. Adjusted EBITDA of $62.7M increased 5.0% year over year and represented an Adjusted EBITDA margin of 8.2%.

Its earnings per share (EPS) expected to touch remained -1.80% for this year while earning per share for the next 5-years is expected to reach at 11.00%. GMS has a gross margin of 32.90% and an operating margin of 5.70% while its profit margin remained 2.70% for the last 12 months. The price moved ahead of 3.34% from the mean of 20 days, -25.57% from mean of 50 days SMA and performed -41.89% from mean of 200 days price. Company’s performance for the week was -7.27%, 33.24% for month and YTD performance remained -45.83%.

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