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Grainger (GWW) Earnings & Sales Beat Estimates in Q4, Up Y/Y
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W.W. Grainger, Inc. (GWW - Free Report) reported adjusted earnings per share (EPS) of $5.44 in fourth-quarter 2021, beating the Zacks Consensus Estimate of $5.25. The bottom line also increased 49% year over year, primarily on higher operating earnings and lower outstanding shares.
Including one-time items, earnings came in at $5.44 in the reported quarter. The figure climbed 74% from the year-ago quarter’s levels.
Grainger’s quarterly revenues rose 14% year over year to $3,359 million. The top line also surpassed the Zacks Consensus Estimate of $3,279 million.
Daily sales increased 16.9% from the prior-year quarter’s levels. The uptick was driven by a strong performance in the High-Touch Solutions North America (N.A.) and Endless Assortment segments.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
Cost of sales climbed 10% year over year to $2,106 million. The gross profit rose 22% year over year to $1,253 million. The gross margin expanded to 37.3% in the quarter compared with the prior-year period’s 34.9%.
Grainger’s adjusted operating income in the fourth quarter was up 41% year on year to $417 million. The adjusted operating margin came in at 12.4% compared with the prior-year quarter’s 10%.
Financial Position
The company had cash and cash equivalents of $241 million at the end of 2021, down from $585 million at 2020-end. Cash flow from operating activities decreased to $937 million in 2021 from $1,123 million in 2020.
Long-term debt was $2,362 million as of Dec 31, 2021, compared with $2,389 million as of Dec 31, 2020. In 2021, the company returned $1,052 million to shareholders through dividends and share buybacks.
2021 Performance
Grainger reported an adjusted EPS of $19.84 in 2021 compared with $16.18 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $19.61. Including one-time items, the bottom line came in at $19.84, up 55% from $12.82 reported in 2020.
Sales were up 10% year over year to $13 billion. The top line surpassed the Zacks Consensus Estimate of $12.9 billion.
2022 Outlook
Grainger projects net sales for the current year to lie between $14.1 billion and $14.5 billion. The company anticipates earnings per share in the band of $23.50-$25.50 for 2022.
Price Performance
In the past year, Grainger’s shares have gained 36.7% against the industry’s loss of 38.3%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 3%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7% in a year.
Applied Industrial Technologies reported adjusted EPS of $1.46 per share in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 14% for 2022. The Zacks Consensus Estimate for current-year earnings has remained unchanged in the past 60 days. AIT’s shares have appreciated 36% in a year.
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Grainger (GWW) Earnings & Sales Beat Estimates in Q4, Up Y/Y
W.W. Grainger, Inc. (GWW - Free Report) reported adjusted earnings per share (EPS) of $5.44 in fourth-quarter 2021, beating the Zacks Consensus Estimate of $5.25. The bottom line also increased 49% year over year, primarily on higher operating earnings and lower outstanding shares.
Including one-time items, earnings came in at $5.44 in the reported quarter. The figure climbed 74% from the year-ago quarter’s levels.
Grainger’s quarterly revenues rose 14% year over year to $3,359 million. The top line also surpassed the Zacks Consensus Estimate of $3,279 million.
Daily sales increased 16.9% from the prior-year quarter’s levels. The uptick was driven by a strong performance in the High-Touch Solutions North America (N.A.) and Endless Assortment segments.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Operational Update
Cost of sales climbed 10% year over year to $2,106 million. The gross profit rose 22% year over year to $1,253 million. The gross margin expanded to 37.3% in the quarter compared with the prior-year period’s 34.9%.
Grainger’s adjusted operating income in the fourth quarter was up 41% year on year to $417 million. The adjusted operating margin came in at 12.4% compared with the prior-year quarter’s 10%.
Financial Position
The company had cash and cash equivalents of $241 million at the end of 2021, down from $585 million at 2020-end. Cash flow from operating activities decreased to $937 million in 2021 from $1,123 million in 2020.
Long-term debt was $2,362 million as of Dec 31, 2021, compared with $2,389 million as of Dec 31, 2020. In 2021, the company returned $1,052 million to shareholders through dividends and share buybacks.
2021 Performance
Grainger reported an adjusted EPS of $19.84 in 2021 compared with $16.18 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $19.61. Including one-time items, the bottom line came in at $19.84, up 55% from $12.82 reported in 2020.
Sales were up 10% year over year to $13 billion. The top line surpassed the Zacks Consensus Estimate of $12.9 billion.
2022 Outlook
Grainger projects net sales for the current year to lie between $14.1 billion and $14.5 billion. The company anticipates earnings per share in the band of $23.50-$25.50 for 2022.
Price Performance
In the past year, Grainger’s shares have gained 36.7% against the industry’s loss of 38.3%.
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Dover Corporation (DOV - Free Report) , Silgan Holdings Inc. (SLGN - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . All the stocks carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 3%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7% in a year.
Applied Industrial Technologies reported adjusted EPS of $1.46 per share in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 14% for 2022. The Zacks Consensus Estimate for current-year earnings has remained unchanged in the past 60 days. AIT’s shares have appreciated 36% in a year.