What Happened?
Shares of agriculture products company SiteOne Landscape Supply (NYSE: SITE) jumped 8.8% in the afternoon session after the company reported fourth-quarter 2025 earnings that significantly beat analyst expectations on profitability, even as revenue slightly missed. Fourth-quarter revenue grew 3.2% year-over-year to $1.05 billion, just shy of Wall Street's estimates. However, the company posted a smaller-than-expected GAAP loss of $0.20 per share, which was 35% better than the consensus forecast. Adjusted EBITDA of $37.6 million also comfortably surpassed expectations. Investors appeared to focus on the strong quarterly profit beat, overlooking weaker-than-expected guidance for full-year 2026 adjusted EBITDA.
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What Is The Market Telling Us
SiteOne’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 10.3% on the news that the company reported third-quarter results that beat analysts' profit estimates. The company's sales of $1.26 billion were up 4.1% year on year, meeting Wall Street's expectations. More impressively, organic revenue grew 3%, significantly outpacing the 1.1% growth analysts had projected. SiteOne's GAAP earnings per share came in at $1.31, which was 6% ahead of consensus estimates. Adjusted EBITDA also outperformed, reaching $127.5 million against an expected $124 million. However, the report was not entirely positive, as the company's full-year EBITDA guidance of $410 million at the midpoint was slightly below the $414.7 million analysts were forecasting. Despite the mixed report, investors appeared to focus on the better-than-expected profitability and organic growth.
SiteOne is up 29.2% since the beginning of the year, and at $161.62 per share, has set a new 52-week high. Investors who bought $1,000 worth of SiteOne’s shares 5 years ago would now be looking at an investment worth $972.75.
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