PATK - Patrick Industries: Expectations Run A Bit Hot After Its Biggest M&A Deal
2024-03-12 13:32:07 ET
Summary
- Patrick Industries, Inc. has experienced strong growth in the RV, manufactured homes, and marine industries over the past decade plus.
- However, the company faced a challenging year in 2023, with sales declining significantly due to market conditions, inflationary pressures and higher interest rates.
- Patrick Industries made a substantial acquisition of Sportech LLC for $315 million, expecting it to be accretive to profit margins and earnings per share.
- While no big recovery is expected in 2024, investors are pleased to see stability from here onwards.
At the start of this year, I called Patrick Industries, Inc. (PATK) a good player with investors pricing in a recovery in 2024. This came after shares re-tested all-time-highs around $100 per share, driven by its long-term success in RVs, manufactured homes and marine industries, even as 2023 was a tougher year....
Patrick Industries: Expectations Run A Bit Hot After Its Biggest M&A Deal