Climb Global Solutions Q2 sales slightly miss estimates

Overview

• US IT distributor's Q2 net sales rose 9% but slightly missed analyst expectations

• Q2 adjusted EBITDA beat analyst estimates

• Net income declined yr/yr due to higher effective tax rate

Outlook

• Company expects to more than double FY 2025 adjusted EBITDA by 2030

• Climb sees organic growth and selective vendor expansion as key strategic priorities

• Company says Europe remains a key area of focus for scaling its global platform

Result Drivers

• ORGANIC VENDOR GROWTH - Co said double-digit organic growth from new and existing vendors drove increases in net sales and gross profit

• ACQUISITION IMPACT - Contributions from the Interworks acquisition supported revenue and gross billings growth

• HIGHER OPERATING EXPENSES - SG&A expenses rose due to Interworks-related costs, variable sales compensation, and increased IT investments

Company press release: ID:nGNX12YbLT

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Climb Global Solutions Inc is $32.00, about 13.6% above its July 28 closing price of $28.18

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 29 - Canada's CGI Q3 revenue slightly beats estimates

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• July 27 - France's Rexel H1 sales rise, EBITA margin improves on volume and price gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)