William Blair Issues Negative Forecast for Ferguson Earnings

Ferguson plc (NASDAQ:FERG) – Equities research analysts at William Blair cut their Q2 2025 earnings estimates for Ferguson in a report released on Tuesday, December 10th. William Blair analyst R. Merkel now expects that the company will post earnings per share of $1.60 for the quarter, down from their previous forecast of $1.81. The consensus estimate for Ferguson’s current full-year earnings is $9.74 per share. William Blair also issued estimates for Ferguson’s Q3 2025 earnings at $2.32 EPS, Q4 2025 earnings at $3.03 EPS, FY2025 earnings at $9.40 EPS, Q1 2026 earnings at $2.86 EPS, Q2 2026 earnings at $1.93 EPS, Q3 2026 earnings at $2.64 EPS and Q4 2026 earnings at $3.37 EPS.

Ferguson (NASDAQ:FERG) last released its quarterly earnings results on Tuesday, September 17th. The company reported $2.98 EPS for the quarter, topping the consensus estimate of $2.86 by $0.12. Ferguson had a return on equity of 34.85% and a net margin of 5.68%. The firm had revenue of $7.95 billion during the quarter, compared to analyst estimates of $8.01 billion. During the same period in the previous year, the company posted $2.77 EPS. The business’s revenue for the quarter was up 1.4% compared to the same quarter last year.

A number of other equities research analysts have also recently commented on the stock. Barclays decreased their target price on shares of Ferguson from $245.00 to $234.00 and set an “overweight” rating for the company in a research report on Thursday. Wells Fargo & Company decreased their price objective on Ferguson from $232.00 to $220.00 and set an “overweight” rating for the company in a report on Wednesday. UBS Group raised their price objective on Ferguson from $228.00 to $236.00 and gave the stock a “buy” rating in a research report on Wednesday, September 18th. Berenberg Bank upped their target price on Ferguson from $224.00 to $240.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Robert W. Baird lowered their price target on Ferguson from $230.00 to $225.00 and set an “outperform” rating for the company in a report on Wednesday. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $231.00.

Ferguson Stock Performance

FERG stock opened at $190.35 on Thursday. Ferguson has a one year low of $180.98 and a one year high of $225.63. The firm has a market cap of $38.21 billion, a price-to-earnings ratio of 22.85, a PEG ratio of 1.90 and a beta of 1.21. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.00 and a current ratio of 1.80. The firm has a 50-day simple moving average of $203.89 and a two-hundred day simple moving average of $202.46.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FERG. Asset Dedication LLC acquired a new stake in shares of Ferguson during the 3rd quarter valued at about $27,000. True Wealth Design LLC boosted its position in Ferguson by 1,350.0% during the third quarter. True Wealth Design LLC now owns 145 shares of the company’s stock worth $29,000 after purchasing an additional 135 shares in the last quarter. EdgeRock Capital LLC purchased a new position in Ferguson during the second quarter worth approximately $32,000. Capital Performance Advisors LLP acquired a new stake in Ferguson in the third quarter valued at approximately $37,000. Finally, Peterson Financial Group Inc. purchased a new stake in shares of Ferguson in the third quarter valued at approximately $39,000. Hedge funds and other institutional investors own 81.98% of the company’s stock.

Insider Transactions at Ferguson

In other news, VP Michael Jacobs sold 2,624 shares of the firm’s stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $200.96, for a total transaction of $527,319.04. Following the sale, the vice president now owns 1,116 shares of the company’s stock, valued at $224,271.36. This trade represents a 70.16 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Ian T. Graham sold 5,778 shares of the business’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $201.27, for a total transaction of $1,162,938.06. Following the completion of the transaction, the insider now owns 5,938 shares of the company’s stock, valued at approximately $1,195,141.26. This represents a 49.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 12,313 shares of company stock worth $2,477,901 over the last 90 days. 0.16% of the stock is currently owned by company insiders.

Ferguson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 6th. Stockholders of record on Friday, December 20th will be issued a $0.83 dividend. This is an increase from Ferguson’s previous quarterly dividend of $0.79. This represents a $3.32 annualized dividend and a dividend yield of 1.74%. The ex-dividend date is Friday, December 20th. Ferguson’s dividend payout ratio is 37.94%.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name.