ADI Global Distribution Inc. Common Stock (NYSE:ADIG) Issues Quarterly Earnings Results, Misses Estimates By $9.11 EPS

ADI Global Distribution Inc. Common Stock (NYSE:ADIG) issued its quarterly earnings data on Thursday. The company reported ($8.65) earnings per share for the quarter, missing the consensus estimate of $0.46 by ($9.11), Briefing.com reports. The firm’s quarterly revenue was up 8.3% on a year-over-year basis.

Here are the key takeaways from ADI Global Distribution Inc. Common Stock’s conference call:

• Third-quarter revenue rose 9% year over year to $1.31 billion, but average daily sales increased only 5% and standalone adjusted EBITDA fell 13% to $66 million. Gross margin was pressured by weaker residential demand, unfavorable product and customer mix, freight costs, and inventory charges; ADI also recorded a $660 million non-cash goodwill impairment.
• ADI lowered its 2026 outlook to revenue of $4.91 billion–$4.93 billion and adjusted EBITDA of $230 million–$240 million. It expects fourth-quarter Exclusive Brands sales to decline mid-single digits and gross margins to remain broadly in line with Q3, while its initial 2027 planning assumes continued residential weakness.
• Management is targeting $80 million in annualized gross cost savings, with $60 million already actioned and the full program expected by 2028; it is also assessing additional reductions. One ADI initiatives include consolidating systems, stores, and distribution facilities, though management said meaningful near-term gross-margin improvement is not expected.
• ADI generated $64 million in operating cash flow and ended the quarter with $208 million in cash and $708 million in total liquidity; net leverage was 2.9 times trailing standalone adjusted EBITDA. Deleveraging remains management’s top capital-allocation priority.

ADI Global Distribution Inc. Common Stock Price Performance

Shares of ADIG stock traded down $9.70 during trading hours on Thursday, reaching $9.88. 5,695,410 shares of the stock were exchanged, compared to its average volume of 886,660. ADI Global Distribution Inc. Common Stock has a 12-month low of $9.79 and a 12-month high of $30.99. The stock’s 50-day moving average is $18.36. The company has a current ratio of 2.80, a quick ratio of 1.62 and a debt-to-equity ratio of 0.40.

More ADI Global Distribution Inc. Common Stock News

These are some of the ADIG news items that stood out recently:

• Positive Sentiment: Third-quarter revenue rose 8.3% year over year, offering a sign of continued sales growth. Quarterly earnings report
• Negative Sentiment: ADI reported a $655 million net loss, including a $659 million non-cash goodwill impairment charge. The company attributed the impairment to continued residential-market weakness, lower projected earnings and cash flows, and unfavorable product and customer mix. Investor alert and investigation announcement
• Negative Sentiment: Quarterly EPS was a loss of $8.65, far below the consensus estimate of $0.46. ADI also cut its full-year outlook, signaling weaker expected performance. Earnings miss and outlook update

Analyst Ratings Changes

Several equities research analysts have recently issued reports on ADIG shares. Seaport Research Partners began coverage on ADI Global Distribution Inc. Common Stock in a research note on Friday, August 14th. They issued a “buy” rating and a $35.00 price objective for the company. JPMorgan Chase & Co. dropped their target price on ADI Global Distribution Inc. Common Stock from $25.00 to $20.00 and set a “neutral” rating for the company in a report on Tuesday, October 13th. Weiss Ratings initiated coverage on ADI Global Distribution Inc. Common Stock in a research report on Monday, October 26th. They set a “sell (d)” rating on the stock. Truist Financial started coverage on ADI Global Distribution Inc. Common Stock in a report on Wednesday, August 26th. They set a “hold” rating and a $24.00 price target on the stock. Finally, Oppenheimer initiated coverage on ADI Global Distribution Inc. Common Stock in a research report on Tuesday, August 4th. They issued an “outperform” rating and a $30.00 price target for the company. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $24.25.

About ADI Global Distribution Inc. Common Stock

ADI Global Distribution Inc. is a wholesale distributor of products and solutions for security, life safety, audiovisual, and other low-voltage applications. It serves professional installers, systems integrators, and businesses with products including video surveillance, access control, intrusion and fire detection, networking, smart-home equipment, and related wiring and accessories. The company also provides services such as technical support, training, and digital tools to help customers select and deploy systems.