MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2022 (ended on Feb 26, 2022) adjusted earnings per share of $1.29, beating the Zacks Consensus Estimate of $1.25. The bottom-line figure improved 25% year over year on the back of strong top-line performance, price increase actions and Mission Critical cost savings.
Including one-time items, the company reported earnings per share of $1.25 compared with the year-ago quarter’s 32 cents.
MSC Industrial generated revenues of around $863 million in the quarter under review, up 11% from $774 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $865 million. The company recorded average daily sales growth of 7.9%.
Operational Update
Cost of goods sold increased 4% year over year to $496 million. Gross profit was up 24% to $366 million. Gross margin came in at 42% compared with the year-ago quarter’s 38%.
Adjusted operating expenses rose 9% year over year to $266 million during the fiscal second quarter. Adjusted operating income amounted to $100 million, up 25% from $81 million. Adjusted operating margin came in at 11.6% in the reported quarter compared with the prior-year quarter’s 10.4%.
Financial Position
MSC Industrial had cash and cash equivalents of $42 million at the end of the fiscal second quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $57 million in the fiscal second quarter compared with the prior-year quarter’s $119 million.
The company’s long-term debt was $584 million at the end of the quarter, unchanged from fiscal 2021-end.
Price Performance
MSC Industrial’s shares have gained 5.4% in the past six months against the industry’s decline of 2.5%.
Zacks Rank & Stocks to Consider
MSC Industrial currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Packaging Corporation of America (PKG - Free Report) , AGCO Corporation (AGCO - Free Report) and Deere & Company (DE - Free Report) . While PKG flaunts a Zacks Rank #1 (Strong Buy), AGCO and DE carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Packaging Corp reported adjusted EPS of $2.76 in fourth-quarter 2021, up 108% year over year and beating the Zacks Consensus Estimate of $2.08. PKG pulled off a trailing four-quarter earnings surprise of 22.7%, on average.
Packaging Corp has an expected earnings growth rate of 12.5% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 5% in the past 60 days. PKG’s shares have gained 14% in the past six months.
AGCO Corp's fourth-quarter 2021 adjusted EPS increased 100% year over year to $3.08, beating the Zacks Consensus Estimate of $1.72. AGCO pulled off a trailing four-quarter earnings surprise of 56.6%, on average. In the past six months, the company’s shares have gained 12.2%.
AGCO Corp has an estimated earnings growth rate of around 12.1% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 10.8%.
Deere’s first-quarter fiscal 2022 adjusted EPS of $2.92 surpassed the Zacks Consensus Estimate of $2.28. DE delivered a trailing four-quarter earnings surprise of 20.6%, on average.
Deere has a projected earnings growth rate of 19.7% for the current fiscal. The Zacks Consensus Estimate for fiscal 2022 earnings has moved north by 2.3% in the past 60 days. DE has moved up 16.2% in the past six months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2022 (ended on Feb 26, 2022) adjusted earnings per share of $1.29, beating the Zacks Consensus Estimate of $1.25. The bottom-line figure improved 25% year over year on the back of strong top-line performance, price increase actions and Mission Critical cost savings.
Including one-time items, the company reported earnings per share of $1.25 compared with the year-ago quarter’s 32 cents.
MSC Industrial generated revenues of around $863 million in the quarter under review, up 11% from $774 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $865 million. The company recorded average daily sales growth of 7.9%.
Operational Update
Cost of goods sold increased 4% year over year to $496 million. Gross profit was up 24% to $366 million. Gross margin came in at 42% compared with the year-ago quarter’s 38%.
Adjusted operating expenses rose 9% year over year to $266 million during the fiscal second quarter. Adjusted operating income amounted to $100 million, up 25% from $81 million. Adjusted operating margin came in at 11.6% in the reported quarter compared with the prior-year quarter’s 10.4%.
Financial Position
MSC Industrial had cash and cash equivalents of $42 million at the end of the fiscal second quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $57 million in the fiscal second quarter compared with the prior-year quarter’s $119 million.
The company’s long-term debt was $584 million at the end of the quarter, unchanged from fiscal 2021-end.
Price Performance
MSC Industrial’s shares have gained 5.4% in the past six months against the industry’s decline of 2.5%.
Zacks Rank & Stocks to Consider
MSC Industrial currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Packaging Corporation of America (PKG - Free Report) , AGCO Corporation (AGCO - Free Report) and Deere & Company (DE - Free Report) . While PKG flaunts a Zacks Rank #1 (Strong Buy), AGCO and DE carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Packaging Corp reported adjusted EPS of $2.76 in fourth-quarter 2021, up 108% year over year and beating the Zacks Consensus Estimate of $2.08. PKG pulled off a trailing four-quarter earnings surprise of 22.7%, on average.
Packaging Corp has an expected earnings growth rate of 12.5% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 5% in the past 60 days. PKG’s shares have gained 14% in the past six months.
AGCO Corp's fourth-quarter 2021 adjusted EPS increased 100% year over year to $3.08, beating the Zacks Consensus Estimate of $1.72. AGCO pulled off a trailing four-quarter earnings surprise of 56.6%, on average. In the past six months, the company’s shares have gained 12.2%.
AGCO Corp has an estimated earnings growth rate of around 12.1% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 10.8%.
Deere’s first-quarter fiscal 2022 adjusted EPS of $2.92 surpassed the Zacks Consensus Estimate of $2.28. DE delivered a trailing four-quarter earnings surprise of 20.6%, on average.
Deere has a projected earnings growth rate of 19.7% for the current fiscal. The Zacks Consensus Estimate for fiscal 2022 earnings has moved north by 2.3% in the past 60 days. DE has moved up 16.2% in the past six months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DE - FREE
Get the latest research report on AGCO - FREE
Get the latest research report on PKG - FREE
Get the latest research report on MSM - FREE