MSC Industrial Direct Company, Inc. (MSM - Free Report) reported third-quarter fiscal 2022 (ended on May 28, 2022) adjusted earnings per share (EPS) of $1.82, beating the Zacks Consensus Estimate of $1.75. The bottom line improved 28% year over year on the back of double-digit average daily sales growth and strong price realization.
Including one-time items, the company reported EPS of $1.78 compared with the year-ago quarter’s $1.68.
MSC Industrial generated revenues of around $959 million in the quarter under review, up 1.7% from $866 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $963 million.
Operational Update
The cost of goods sold increased 9.5% year over year to $547 million. Gross profit was up 12% to $411 million. Gross margin came in at 43% compared with the year-ago quarter’s 42%.
Adjusted operating expenses rose 5% year over year to $271 million during the fiscal third quarter. Adjusted operating income amounted to $140 million, up 28% from $109 million. Adjusted operating margin came in at 14.6% in the reported quarter compared with the prior-year quarter’s 12.6%.
Financial Position
MSC Industrial had cash and cash equivalents of $29 million at the end of the fiscal third quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $135 million in the nine months ended on May 28, 2022, compared with the prior-year quarter’s $139 million.
The company’s long-term debt was $539 million at the end of the fiscal third quarter, down from $584 million at fiscal 2021-end.
MSC Industrial expects double-digit average daily sales growth to continue in the fiscal fourth quarter.
Price Performance
MSC Industrial’s shares have lost 10.4% in the past six months compared with the industry’s fall of 32.6%.
Zacks Rank & Other Stocks to Consider
MSC Industrial currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company (GPK - Free Report) , Myers Industries (MYE - Free Report) and Titan International , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.
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MSC Industrial Direct Company, Inc. (MSM - Free Report) reported third-quarter fiscal 2022 (ended on May 28, 2022) adjusted earnings per share (EPS) of $1.82, beating the Zacks Consensus Estimate of $1.75. The bottom line improved 28% year over year on the back of double-digit average daily sales growth and strong price realization.
Including one-time items, the company reported EPS of $1.78 compared with the year-ago quarter’s $1.68.
MSC Industrial generated revenues of around $959 million in the quarter under review, up 1.7% from $866 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $963 million.
Operational Update
The cost of goods sold increased 9.5% year over year to $547 million. Gross profit was up 12% to $411 million. Gross margin came in at 43% compared with the year-ago quarter’s 42%.
Adjusted operating expenses rose 5% year over year to $271 million during the fiscal third quarter. Adjusted operating income amounted to $140 million, up 28% from $109 million. Adjusted operating margin came in at 14.6% in the reported quarter compared with the prior-year quarter’s 12.6%.
Financial Position
MSC Industrial had cash and cash equivalents of $29 million at the end of the fiscal third quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $135 million in the nine months ended on May 28, 2022, compared with the prior-year quarter’s $139 million.
The company’s long-term debt was $539 million at the end of the fiscal third quarter, down from $584 million at fiscal 2021-end.
MSC Industrial expects double-digit average daily sales growth to continue in the fiscal fourth quarter.
Price Performance
MSC Industrial’s shares have lost 10.4% in the past six months compared with the industry’s fall of 32.6%.
Zacks Rank & Other Stocks to Consider
MSC Industrial currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company (GPK - Free Report) , Myers Industries (MYE - Free Report) and Titan International , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in 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 >>
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