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The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $942 million, indicating year-over-year growth of 11.7%. The same for earnings per share is pegged at $1.47, suggesting a year-over-year improvement of 17.6%. Earnings estimates have been unchanged over the past 30 days.
Q4 Results
In the last reported quarter, MSC Industrial’s revenues and earnings improved on a year-over-year basis. The bottom and top lines beat the Zacks Consensus Estimate. The company has surpassed the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 3.6%, on average.
MSC Industrial Direct Company, Inc. Price and EPS Surprise
Around 70% of MSC Industrial’s revenues came from sales in the manufacturing sector. The recent contraction in the manufacturing sector in the September-November period are expected to get reflected in the company’s fiscal first-quarter top line. Per the Federal Reserve, industrial production rose 0.4% in September, followed by a 0.1% dip in October and a 0.2% contraction in November. General economic uncertainty has led to a slowdown in orders. However, the impacts of recent acquisitions and pricing initiatives are likely to have aided its top-line performance.
The company’s “Mission Critical” project, which had been initiated to accelerate market share capture and improve profitability through fiscal 2023, has been contributing to its earnings. In fiscal 2022, MSM achieved its target of $25 million in savings from the project. It is targeting another $15 million in fiscal 2023 and believes that it is on track to exceed its goal of $100 million in savings by the fiscal 2023-end. Part of this benefit is likely to get reflected in the first-quarter fiscal 2023 results. These savings, along with the company’s pricing actions, are anticipated to have negated the impacts of inflated raw material, labor and freight costs in the quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for MSC Industrial 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. However, 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: MSM has an Earnings ESP of +0.98%.
Zacks Rank: MSC Industrial currently carries a Zacks Rank #4 (Sell).
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 12.6% in the past three months against the industry’s 8.3% growth.
Stocks Poised to Beat Earnings Estimates
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 0.9% north in the past 30 days and is currently pegged at $5.48 per share. This suggests year-over-year growth of 87.7%.
The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $11.4 billion, indicating 33.9% growth from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem (XYL - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is currently pegged at 79 cents per share. This suggests year-over-year growth of 25.4%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.4 billion, indicating growth of 6.1% from the prior-year quarter’s reported level. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works (ITW - Free Report) currently has an Earnings ESP of +3.54% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 30 days and is currently pegged at $2.61 per share. This suggests year-over-year growth of 33.8%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Image: Bigstock
MSC Industrial (MSM) to Report Q1 Earnings: What's in Store?
MSC Industrial Direct Co., Inc. (MSM - Free Report) is scheduled to report first-quarter fiscal 2023 results on Jan 5, 2023, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $942 million, indicating year-over-year growth of 11.7%. The same for earnings per share is pegged at $1.47, suggesting a year-over-year improvement of 17.6%. Earnings estimates have been unchanged over the past 30 days.
Q4 Results
In the last reported quarter, MSC Industrial’s revenues and earnings improved on a year-over-year basis. The bottom and top lines beat the Zacks Consensus Estimate. The company has surpassed the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 3.6%, on average.
MSC Industrial Direct Company, Inc. Price and EPS Surprise
MSC Industrial Direct Company, Inc. price-eps-surprise | MSC Industrial Direct Company, Inc. Quote
Factors to Note
Around 70% of MSC Industrial’s revenues came from sales in the manufacturing sector. The recent contraction in the manufacturing sector in the September-November period are expected to get reflected in the company’s fiscal first-quarter top line. Per the Federal Reserve, industrial production rose 0.4% in September, followed by a 0.1% dip in October and a 0.2% contraction in November. General economic uncertainty has led to a slowdown in orders. However, the impacts of recent acquisitions and pricing initiatives are likely to have aided its top-line performance.
The company’s “Mission Critical” project, which had been initiated to accelerate market share capture and improve profitability through fiscal 2023, has been contributing to its earnings. In fiscal 2022, MSM achieved its target of $25 million in savings from the project. It is targeting another $15 million in fiscal 2023 and believes that it is on track to exceed its goal of $100 million in savings by the fiscal 2023-end. Part of this benefit is likely to get reflected in the first-quarter fiscal 2023 results. These savings, along with the company’s pricing actions, are anticipated to have negated the impacts of inflated raw material, labor and freight costs in the quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for MSC Industrial 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. However, 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: MSM has an Earnings ESP of +0.98%.
Zacks Rank: MSC Industrial currently carries a Zacks Rank #4 (Sell).
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 12.6% in the past three months against the industry’s 8.3% growth.
Stocks Poised to Beat Earnings Estimates
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 0.9% north in the past 30 days and is currently pegged at $5.48 per share. This suggests year-over-year growth of 87.7%.
The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $11.4 billion, indicating 33.9% growth from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem (XYL - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is currently pegged at 79 cents per share. This suggests year-over-year growth of 25.4%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.4 billion, indicating growth of 6.1% from the prior-year quarter’s reported level. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works (ITW - Free Report) currently has an Earnings ESP of +3.54% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has increased 0.4% in the past 30 days and is currently pegged at $2.61 per share. This suggests year-over-year growth of 33.8%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.