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The Zacks Consensus Estimate for GWW’s first-quarter revenues is pegged at $4.07 billion, indicating growth of 11.6% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at $8.55, suggesting an improvement of 20.9% from the prior-year quarter. Earnings estimates have remained unchanged in the past 60 days.
In the last reported quarter, Grainger’s earnings and revenues beat the Zacks Consensus Estimate and increased year over year. GWW has an impressive earnings surprise history, having surpassed each of the trailing four quarters, the average beat being 9.8%.
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. The combination of a positiveEarnings 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.
Earnings ESP: Grainger has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Factors to Note
Grainger has been witnessing strong growth in core and non-pandemic product sales for the past few quarters. The company’s product mix has been stabilizing, as customers have been returning to normal operations post-pandemic.
Also, GWW has remained focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities, and executing improvement initiatives within its supply chain. These factors are likely to have contributed to the company’s first-quarter performance.
Grainger’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing, strong revenue growth across the company’s North American regions, and an expansion in large and midsize customers. The Zacks Consensus Estimate for the segment’s revenues is pegged at $3,186 million, up 10.7% from the 2022 reported level.
Grainger has been witnessing market-beating growth in the High-Touch Solutions market compared with 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 services and offering differentiated sales and services.
GWW’s Endless Assortment segment is likely to have benefited from strong customer acquisition and repeat business in the quarter to be reported. Customer growth at MonotaRO is expected to have positively impacted the segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $766 million, up 9.9% from the prior-year quarter’s reported figure.
The company has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A expenses due to higher technology investments, are likely to have impacted its margins in the quarter under review. However, its pricing actions are anticipated to have offset some of the negative impacts.
Price Performance
Grainger shares have improved 30.2% in a year compared with the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Ingersoll Rand Inc. (IR - Free Report) is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share, suggesting year-over-year growth of 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IR’s quarterly revenues is pegged at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter earnings surprise of 8.5%, on average.
A. O. Smith Corporation (AOS - Free Report) is set to release first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, same as the year-ago reported figure.
The Zacks Consensus Estimate for AOS’ quarterly revenues is pegged at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share, implying year-over-year growth of 3.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $4 billion, indicating growth of 0.6% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 0.9%, on average.
Image: Bigstock
Grainger (GWW) Set to Report Q1 Earnings: What's in Store?
W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report first-quarter 2023 results on Apr 27, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for GWW’s first-quarter revenues is pegged at $4.07 billion, indicating growth of 11.6% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at $8.55, suggesting an improvement of 20.9% from the prior-year quarter. Earnings estimates have remained unchanged in the past 60 days.
W.W. Grainger, Inc. Price and EPS Surprise
W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote
Q4 Results
In the last reported quarter, Grainger’s earnings and revenues beat the Zacks Consensus Estimate and increased year over year. GWW has an impressive earnings surprise history, having surpassed each of the trailing four quarters, the average beat being 9.8%.
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. However, that’s not the case here.
Earnings ESP: Grainger has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Factors to Note
Grainger has been witnessing strong growth in core and non-pandemic product sales for the past few quarters. The company’s product mix has been stabilizing, as customers have been returning to normal operations post-pandemic.
Also, GWW has remained focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities, and executing improvement initiatives within its supply chain. These factors are likely to have contributed to the company’s first-quarter performance.
Grainger’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing, strong revenue growth across the company’s North American regions, and an expansion in large and midsize customers. The Zacks Consensus Estimate for the segment’s revenues is pegged at $3,186 million, up 10.7% from the 2022 reported level.
Grainger has been witnessing market-beating growth in the High-Touch Solutions market compared with 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 services and offering differentiated sales and services.
GWW’s Endless Assortment segment is likely to have benefited from strong customer acquisition and repeat business in the quarter to be reported. Customer growth at MonotaRO is expected to have positively impacted the segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $766 million, up 9.9% from the prior-year quarter’s reported figure.
The company has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A expenses due to higher technology investments, are likely to have impacted its margins in the quarter under review. However, its pricing actions are anticipated to have offset some of the negative impacts.
Price Performance
Grainger shares have improved 30.2% in a year compared with the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Ingersoll Rand Inc. (IR - Free Report) is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share, suggesting year-over-year growth of 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IR’s quarterly revenues is pegged at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter earnings surprise of 8.5%, on average.
A. O. Smith Corporation (AOS - Free Report) is set to release first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, same as the year-ago reported figure.
The Zacks Consensus Estimate for AOS’ quarterly revenues is pegged at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share, implying year-over-year growth of 3.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $4 billion, indicating growth of 0.6% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 0.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.