Ferguson’s Q3 FY22/23 performance was largely in line with the street’s expectations ¬– revenue and adjusted EPS were 0.8%% and 1.9% ahead of consensus. The US residential sector remained in the red (-6% yoy) and non-residential remained in the black. The slump in Canadian profitability was worse than we had expected. While we expect the near-term pressure to continue, the company should continue to gain market share. We maintain our positive stock recommendation.