Analyst Views: What did you think of Wolseley’s quarterly trading update?

 
Kasmira Jefford
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PAUL CHECKETTS | BARCLAYS

Trading in the third quarter was slightly better than our expectations... However the UK was much worse on like-for-likes with a 3.5 per cent decline, although margin of 5.3 per cent was 20 basis points better. They don’t seem to be getting the balance between growth and margins quite right.

CLYDE LEWIS | PEEL HUNT

While the mix was a little different from our expectations, the overall results and outlook are in line and so we see only modest changes to full-year estimates. The drop in the UK is a bit surprising given the construction backdrop, but is partly explained by its decision not to chase high-volume but low-margin business.

ANDY MURPHY | BANK OF AMERICA MERRILL LYNCH

Third quarter results were good stripping out the impact of foreign exchange, M&A costs and investment...There was some expectation that like-for-like growth...could have been weak. However, in the event, growth in the US was strong, with disappointment in other geographies offsetting the good performance.

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