Reece Full Year 2024 Earnings: Revenues Beat Expectations

Reece (ASX:REH) Full Year 2024 Results

Key Financial Results

• Revenue: AU$9.10b (up 3.0% from FY 2023).
• Net income: AU$419.2m (up 8.1% from FY 2023).
• Profit margin: 4.6% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue.

All figures shown in the chart above are for the trailing 12 month (TTM) period

Reece Revenues Beat Expectations

Revenue exceeded analyst estimates by 1.8%.

The primary driver behind last 12 months revenue was the United States segment contributing a total revenue of AU$5.17b (57% of total revenue). Notably, cost of sales worth AU$6.50b amounted to 71% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to AU$1.93b (88% of total expenses). Explore how REH's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Trade Distributors industry in Australia.

Performance of the Australian Trade Distributors industry.

The company's shares are up 1.7% from a week ago.

Valuation

It's possible that Reece could be overvalued with our 6-factor valuation analysis indicating potential weakness. You can access our in-depth analysis and discover what the outlook is like for the stock by clicking here.

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