MSC Industrial Direct Company, Inc. ( MSM Quick Quote MSM - Free Report) reported earnings per share of $1.03 in second-quarter fiscal 2021 (ended as of Feb 27, 2021), beating the Zacks Consensus Estimate $1.01. The bottom-line figure improved 1% year over year. The company’s Mission Critical program delivered $9 million of savings in the quarter, leading to earnings improvement despite lower revenues. Including one-time items, the company reported earnings per share of 32 cents in second-quarter fiscal 2021 compared with $1.00 in the year-ago quarter. MSC Industrial generated revenues of $774 million, down 1.5% from $786 million reported in the year-ago quarter. The top-line figure missed the Zacks Consensus Estimate of $779.7 million. Improvement in sales levels of non-safety and non-janitorial product lines continued through the quarter. Sales of safety and janitorial products grew in the mid-teens. Average daily sales were $12.7 million for the quarter. Operational Update
Adjusted cost of goods sold decreased 1% year on year to $449 million. Gross profit slipped 2% to $325 million from the year-earlier quarter. Gross margin came in at 42%, flat compared with the year-ago quarter.
Adjusted operating expenses declined 3% year over year to $244 million during the fiscal second quarter. Adjusted operating income in the reported quarter amounted to $80.5 million, reflecting year-over-year growth of 1%. Operating margin came in at 10.4% in the reported quarter compared with the 10.1% in the prior-year quarter. Financial Position
MSC Industrial had cash and cash equivalents of $20.2 million at the end of the fiscal second quarter compared with the $125 million at the end of fiscal 2020. The company’s long-term debt stood at $462 million at the end of the fiscal second quarter, down from $497 million at the end of fiscal 2020. The company generated cash flow from operating activities of $119 million in the first half of fiscal 2021 compared with $156 million in the prior-year period.
The company’s Mission Critical program has resulted in cumulative savings of $17 million so far in fiscal 2021 and it is on track to meet its goal of $25 million by the end of this year. It has invested around $5 million in growth programs. The company maintains its goal of achieving $90 million to $100 million of gross cost savings through fiscal 2023. Price Performance
MSC Industrial’s shares have appreciated 41.6% over the past year compared with the
industry’s rally of 95.4%. Zacks Rank & Stocks to Consider
MSC Industrial currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Deere & Company ( DE Quick Quote DE - Free Report) , AGCO Corporation ( AGCO Quick Quote AGCO - Free Report) and Crown Holdings, Inc. ( CCK Quick Quote CCK - Free Report) . While Deere sports a Zacks Rank #1 (Strong Buy), AGCO and Crown Holdings carry a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here Deere has a projected earnings growth rate of 82.5% for fiscal 2021. Over the past year, the company’s shares have soared 155%. AGCO has an estimated earnings growth rate of 29.9% for the ongoing year. The company’s shares have surged 182% in the past year. Crown Holdings has an expected earnings growth rate of 16.2% for 2021. The stock has appreciated 69% in a year’s time. Time to Invest in Legal Marijuana
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