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Grainger (GWW) Q1 Earnings & Sales Top Estimates, Up Y/Y
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W.W. Grainger, Inc. (GWW - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $4.48, beating the Zacks Consensus Estimate of $4.31. The bottom line increased 6% year over year primarily on lower operating earnings.
Including one-time items, earnings came in at $4.48 in the reported quarter. The figure jumped 40% from the year-ago quarter.
Grainger’s quarterly revenues went up 3% year over year to $3,084 million. The top line also surpassed the Zacks Consensus Estimate of $3,054 billion.
Daily sales for the quarter increased 5.9% compared with the prior-year quarter. This increase in sales was driven by strong performance in both the High-Touch Solutions North America (N.A.) and Endless Assortment segments.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
Adjusted cost of sales increased 6% year over year to $1,991 million. Gross profit was down 2% year over year to $1,093 million. Gross margin contracted to 35.5% in the quarter from the prior-year quarter’s 37.4% due to the pandemic-induced headwinds.
Grainger’s adjusted operating income in the first quarter was up 4% year on year to $358 million. Adjusted operating margin came in at 11.6% compared with the prior-year quarter’s 11.4%.
Financial Position
The company had cash and cash equivalents of $562 million as of Mar 31, 2021, down from $585 million as of Dec 31, 2020. Cash provided by operating activities increased to $294 million in first-quarter 2021 from $244 million in the prior-year quarter.
Long-term debt was $2,373 million as of Mar 31, 2021, compared with $2,389 million as of Dec 31, 2020. During the first quarter, the company returned $256 million to shareholders through dividends and share buybacks.
2021 Outlook
Grainger projects net sales for the current year to lie between $12.7 billion and $13 billion. The company anticipates earnings per share in the band of $19.00-$20.50.
Price Performance
Over the past year, Grainger’s shares have gained 63.5% compared with the industry’s rally of 78.2%.
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
Dover has a projected earnings growth rate of 21.8% for 2021. Over the past year, the company’s shares have gained 54.3%.
Caterpillar has an estimated earnings growth rate of 25.7% for the ongoing year. The company’s shares have rallied 99.7% in the past year.
Pentair has an expected earnings growth rate of 11.6% for 2021. The stock has surged 86% in a year’s time.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Grainger (GWW) Q1 Earnings & Sales Top Estimates, Up Y/Y
W.W. Grainger, Inc. (GWW - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $4.48, beating the Zacks Consensus Estimate of $4.31. The bottom line increased 6% year over year primarily on lower operating earnings.
Including one-time items, earnings came in at $4.48 in the reported quarter. The figure jumped 40% from the year-ago quarter.
Grainger’s quarterly revenues went up 3% year over year to $3,084 million. The top line also surpassed the Zacks Consensus Estimate of $3,054 billion.
Daily sales for the quarter increased 5.9% compared with the prior-year quarter. This increase in sales was driven by strong performance in both 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
Adjusted cost of sales increased 6% year over year to $1,991 million. Gross profit was down 2% year over year to $1,093 million. Gross margin contracted to 35.5% in the quarter from the prior-year quarter’s 37.4% due to the pandemic-induced headwinds.
Grainger’s adjusted operating income in the first quarter was up 4% year on year to $358 million. Adjusted operating margin came in at 11.6% compared with the prior-year quarter’s 11.4%.
Financial Position
The company had cash and cash equivalents of $562 million as of Mar 31, 2021, down from $585 million as of Dec 31, 2020. Cash provided by operating activities increased to $294 million in first-quarter 2021 from $244 million in the prior-year quarter.
Long-term debt was $2,373 million as of Mar 31, 2021, compared with $2,389 million as of Dec 31, 2020. During the first quarter, the company returned $256 million to shareholders through dividends and share buybacks.
2021 Outlook
Grainger projects net sales for the current year to lie between $12.7 billion and $13 billion. The company anticipates earnings per share in the band of $19.00-$20.50.
Price Performance
Over the past year, Grainger’s shares have gained 63.5% compared with the industry’s rally of 78.2%.
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Industrial Products sector include Dover Corporation (DOV - Free Report) , Caterpillar Inc. (CAT - Free Report) and Pentair plc (PNR - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover has a projected earnings growth rate of 21.8% for 2021. Over the past year, the company’s shares have gained 54.3%.
Caterpillar has an estimated earnings growth rate of 25.7% for the ongoing year. The company’s shares have rallied 99.7% in the past year.
Pentair has an expected earnings growth rate of 11.6% for 2021. The stock has surged 86% in a year’s time.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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