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Grainger (GWW) Q3 Earnings & Sales Top Estimates, Up Y/Y
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W.W. Grainger, Inc. (GWW - Free Report) reported third-quarter 2021 adjusted earnings per share (EPS) of $5.65, beating the Zacks Consensus Estimate of $5.31. The bottom line also increased 25%, year over year, primarily on higher operating earnings.
Including one-time items, earnings came in at $5.65 in the reported quarter. The figure climbed 28% from the year-ago quarter.
Grainger’s quarterly revenues went up 12% year over year to $3,372 million. The top line also surpassed the Zacks Consensus Estimate of $3,330 million.
Daily sales for the quarter increased 11.7% compared with the prior-year period. This increase in sales was driven by a strong performance in both the High-Touch Solutions North America (N.A.) and Endless Assortment segments.
Operational Update
Cost of sales rose 9.2% year over year to $2,122 million. The gross profit climbed 16% year over year to $1,250 million. The gross margin came in at 37.1% in the quarter, marginally up from the prior-year period’s 35.6%.
Grainger’s adjusted operating income in the third quarter was up 17% year on year to $438 million. The adjusted operating margin came in at 13% compared with the prior-year quarter’s 12.4%.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
The company had cash and cash equivalents of $328 million as of Sep 30, 2021, down from $585 million as of Dec 31, 2020. Cash flow from operating activities decreased to $161 million in third-quarter 2021 from the prior-year quarter’s $311 million.
Long-term debt was $2,372 million as of Sep 30, 2021, compared with $2,389 million as of Dec 31, 2020. During the third quarter, the company returned $327 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 for 2021.
Price Performance
So far this year, Grainger’s shares have gained 6.7% as against the industry’s loss of 16.3%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
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Grainger (GWW) Q3 Earnings & Sales Top Estimates, Up Y/Y
W.W. Grainger, Inc. (GWW - Free Report) reported third-quarter 2021 adjusted earnings per share (EPS) of $5.65, beating the Zacks Consensus Estimate of $5.31. The bottom line also increased 25%, year over year, primarily on higher operating earnings.
Including one-time items, earnings came in at $5.65 in the reported quarter. The figure climbed 28% from the year-ago quarter.
Grainger’s quarterly revenues went up 12% year over year to $3,372 million. The top line also surpassed the Zacks Consensus Estimate of $3,330 million.
Daily sales for the quarter increased 11.7% compared with the prior-year period. This increase in sales was driven by a strong performance in both the High-Touch Solutions North America (N.A.) and Endless Assortment segments.
Operational Update
Cost of sales rose 9.2% year over year to $2,122 million. The gross profit climbed 16% year over year to $1,250 million. The gross margin came in at 37.1% in the quarter, marginally up from the prior-year period’s 35.6%.
Grainger’s adjusted operating income in the third quarter was up 17% year on year to $438 million. The adjusted operating margin came in at 13% compared with the prior-year quarter’s 12.4%.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Financial Position
The company had cash and cash equivalents of $328 million as of Sep 30, 2021, down from $585 million as of Dec 31, 2020. Cash flow from operating activities decreased to $161 million in third-quarter 2021 from the prior-year quarter’s $311 million.
Long-term debt was $2,372 million as of Sep 30, 2021, compared with $2,389 million as of Dec 31, 2020. During the third quarter, the company returned $327 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 for 2021.
Price Performance
So far this year, Grainger’s shares have gained 6.7% as against the industry’s loss of 16.3%.
Zacks Rank and Stocks to Consider
Grainger currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Industrial Products sector include Nordson Corporation (NDSN - Free Report) , Worthington Industries, Inc. (WOR - Free Report) and DXP Enterprises, Inc. (DXPE - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nordson has an anticipated earnings growth rate of 45.2% for fiscal 2021. The company’s shares have rallied around 22%, year to date.
Worthington has an estimated earnings growth rate of 3.6% for fiscal 2022. Year to date, the company’s shares have gained 9.8%.
DXP Enterprises has a projected earnings growth rate of 77.6% for the current year. The stock has appreciated around 49%, so far this year.