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Grainger (GWW) to Report Q1 Earnings: What's in the Cards?

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W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report first-quarter 2022 results on Apr 28, before the opening bell.

Q1 Estimates

The Zacks Consensus Estimate for the first-quarter revenues is pegged at $3.52 billion, indicating growth of 14.1% from the year-ago quarter’s levels. The consensus mark for earnings per share is pegged at $6.17, suggesting an improvement of 37.7% from the prior-year quarter’s levels. Earnings estimates have been stable in the past 30 days.

Q4 Results

In the last reported quarter, Grainger’s earnings and revenues beat the respective Zacks Consensus Estimates and increased year over year. The company has surpassed the earnings estimates in two of the last four quarters. GWW has a trailing four-quarter negative earnings surprise of 1.31%, on average.

W.W. Grainger, Inc. Price and EPS Surprise

 

W.W. Grainger, Inc. Price and EPS Surprise

W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote

 

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Grainger has an Earnings ESP of -0.22%.

Zacks Rank: The company currently carries a Zacks Rank # 4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Note

Grainger has been seeing strong growth in core and non-pandemic product sales as the U.S. economy recovered from the coronavirus pandemic. This is likely to have aided first-quarter performance. Pandemic product sales also remain elevated, with surging e-commerce activities. These factors are likely to have contributed to the High Touch Solutions North America (N.A.) segment’s to-be-reported quarter’s performance.

Grainger’s Endless Assortment segment is likely to have benefited from new customer acquisitions at Zoro and MonotaRO business in the March-end quarter.

The company is witnessing market-beating growth in the High-Touch Solutions market than in the U.S. MRO (maintenance, repair and operating) market. The upside can be attributed to strategic activities such as building advantaged MRO solutions, delivering unparalleled customer service, and offering differentiated sales and services.

Higher operating costs might have impacted Grainger’s operating margin during the January - March period. Incremental SG&A expenses due to higher technology investments, rising freight and material costs and supply-chain challenges are also likely to have impacted the margin during the first quarter. Nevertheless, its pricing actions and ability to navigate supply chain challenges are expected to have offset some of the negative impacts.

Price Performance

Grainger’s shares have gained 19% in a year’s time against the industry’s loss of 52.2%.

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Image Source: Zacks Investment Research

 

 

Stocks Poised to Beat Earnings Estimates

Here are some other Industrial Product stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.28% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings is currently pegged at $6.68 per share, suggesting 17.6% growth from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $13.5 billion, highlighting year-over-year growth of 22.5%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average. It has a long-term earnings growth of 13.5%.

Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings has dropped 0.9% in the past 30 days and is currently pegged at $2.05 per share. The projection indicates a 2.8% decline from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.

John Bean Technologies Corporation (JBT - Free Report) currently has an Earnings ESP of +3.57% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings have been stable in the past 30 days at 56 cents per share, suggesting a year-over-year decline of 37.8%.

The Zacks Consensus Estimate for John Bean’s quarterly revenues is pegged at $441 million, which indicates an increase of 5.5% from the prior-year quarter’s levels. It has a trailing four-quarter earnings surprise of 0.93%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.