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MSC Industrial (MSM) Earnings & Sales Top Estimates in Q1

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MSC Industrial Direct Company, Inc. (MSM - Free Report) reported first-quarter fiscal 2022 (ended as of Nov 27, 2021) adjusted earnings per share of $1.25 beating the Zacks Consensus Estimate of $1.18. The bottom-line figure improved 13% year over year on the back of strong top-line performance and its cost control measures. The company’s Mission Critical program delivered savings worth $10 million in the quarter.

Including one-time items, the company reported earnings per share of $1.188 in quarter compared with the year-ago quarter’s 69 cents.

MSC Industrial generated revenues of around $849 million in the quarter under review, up 10% from $772 million reported in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $837 million. The company delivered average daily sales growth of nearly 500 basis points above the Industrial Production Index.

Operational Update

Cost of goods sold increased 11% year over year to $496 million. Gross profit was up 9% to $353 million from the year-earlier quarter. Gross margin came in at 41.6%, down 30 basis points year over year.

Adjusted operating expenses rose 8% year over year to $256.6 million during the fiscal first quarter. Adjusted operating income in the reported quarter amounted to $96 million, up 13% from the prior-year quarter’s $85 million. Operating margin came in at 11.3% in the reported quarter compared with last year quarter’s 11.0%.

Financial Position

MSC Industrial had cash and cash equivalents of $63 million at the end of the fiscal first quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $58 million in the first quarter of fiscal 2022 compared with the prior-year quarter’s $103 million.

The company’s long-term debt was $558 million at the end of the quarter, down from $584 million at fiscal 2021-end.

Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

MSC Industrial’s shares have fallen 0.5% so far this year compared with the industry’s decline of 39.6%.

Zacks Rank & Stocks to Consider

MSC Industrial currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Greif, Inc. (GEF - Free Report) , SPX Flow and Emerson Electric Co. (EMR - Free Report) . While GEF and FLOW currently flaunt a Zacks Rank #1 (Strong Buy), EMR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Greif has an estimated earnings growth rate of 11.4% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 2%.

So far this year, the company’s shares have gained 22.1%. Greif has a trailing four-quarter earnings surprise of 16.8%, on average.

SPX Flow has an expected earnings growth rate of 102% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.

SPX Flow’s shares have risen 48.3% year-to-date. FLOW has a trailing four-quarter earnings surprise of 40%, on average.

Emerson Electric has a projected earnings growth rate of 19.9% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.

EMR’s shares have appreciated 13.6% so far this year. Emerson Electric has a trailing four-quarter earnings surprise of 10.7%, on average.


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