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Grainger Q3 Earnings & Revenues Miss Estimates, Increase Y/Y
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W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share (EPS) of $9.87 in third-quarter 2024, missing the Zacks Consensus Estimate of $9.98. However, the bottom line improved 4.7% year over year, aided by the strong performances of the High-Touch Solutions N.A. and Endless Assortment segments.
Grainger’s quarterly revenues rose 4.3% year over year to $4.39 billion. The top line, however, missed the Zacks Consensus Estimate of $4.41 billion. Daily sales increased 2.6% from the prior-year quarter. We had predicted daily sales growth of 2.8% for the quarter.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
The High-Touch Solutions N.A. segment’s daily sales rose 1.7% in the quarter from the third quarter of 2023. The upside was driven by growth in all geographies and included broad-based gains across most customer end markets. Our model had predicted year-over-year organic daily sales growth of 2.3% for the quarter.
The Endless Assortment segment’s daily sales moved up 6.4% in the quarter due to increased customer acquisitions across the segment and enterprise customer growth at MonotaRO. Our model predicted year-over-year organic daily sales growth of 4.4% for the quarter.
The cost of sales climbed 4.5% year over year to $2.67 billion. The gross profit rose 3.9% year over year to $1.7 billion. The gross margin was 39.2% in the quarter compared with the prior-year period’s 39.3%.
Selling, general and administrative expenses rose 4.7% year over year to $1.03 billion. Grainger’s operating income in the quarter was up 2.8% year over year to $686 million. The operating margin was 15.6% compared with 15.9% in the prior-year quarter.
Grainger’s Q3 Cash Flow & Balance Sheet Updates
The company had cash and cash equivalents of $1.45 billion at the end of the third quarter of 2024, up from $0.66 billion at the end of 2023. The cash flow from operating activities was $611 million in the third quarter of 2024 compared with $523 million in the prior-year quarter.
The long-term debt was $2.28 billion as of Sept. 30, 2024, compared with $2.27 billion as of Dec. 31, 2023. Grainger returned $328 million to shareholders through dividends and share buybacks in the reported quarter.
GWW’s 2024 Outlook
GWW expects net sales between $17.1 billion and $17.3 billion, updated from the prior stated $17.0-$17.3 billion. Sales growth is anticipated at 4-4.75%, updated from 3.2-5.2%. Daily sales growth is envisioned at 4.5-5.25% compared with the earlier mentioned 4-6%. EPS is expected to be $38.65-$39.35 compared with the prior stated $38.00-$39.50.
Grainger’s Price Performance
In the past year, Grainger’s shares have gained 49.4% compared with the industry’s growth of 19.3%.
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported a fourth-quarter fiscal 2024 (ended on Aug. 31, 2024) adjusted EPS of $1.03, missing the Zacks Consensus Estimate of $1.08. The bottom line decreased 37% year over year.
MSC Industrial generated revenues of around $952 million, down 8% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $959 million.
SiteOne Landscape Supply, Inc. (SITE - Free Report) recorded an adjusted EPS of 97 cents in the third quarter of 2024, missing the Zacks Consensus Estimate of $1.18. The company posted earnings of $1.25 per share in the third quarter of 2023.
SITE registered revenues of $1.21 billion for the September-end quarter of 2024, surpassing the Zacks Consensus Estimate of $1.18 billion. The top line rose 2.4% year over year.
Industrial Services Stock Awaiting Results
Hillenbrand, Inc. (HI - Free Report) is set to release its fourth-quarter fiscal 2024 results on Nov. 13.
The Zacks Consensus Estimate for HI’s EPS is pegged at 93 cents for the fiscal fourth quarter, suggesting a decline of 17.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $796.8 million, indicating a year-over-year increase of 4.5%.
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Grainger Q3 Earnings & Revenues Miss Estimates, Increase Y/Y
W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share (EPS) of $9.87 in third-quarter 2024, missing the Zacks Consensus Estimate of $9.98. However, the bottom line improved 4.7% year over year, aided by the strong performances of the High-Touch Solutions N.A. and Endless Assortment segments.
Grainger’s quarterly revenues rose 4.3% year over year to $4.39 billion. The top line, however, missed the Zacks Consensus Estimate of $4.41 billion. Daily sales increased 2.6% from the prior-year quarter. We had predicted daily sales growth of 2.8% for the quarter.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Grainger’s Q3 Segmental Performance
The High-Touch Solutions N.A. segment’s daily sales rose 1.7% in the quarter from the third quarter of 2023. The upside was driven by growth in all geographies and included broad-based gains across most customer end markets. Our model had predicted year-over-year organic daily sales growth of 2.3% for the quarter.
The Endless Assortment segment’s daily sales moved up 6.4% in the quarter due to increased customer acquisitions across the segment and enterprise customer growth at MonotaRO. Our model predicted year-over-year organic daily sales growth of 4.4% for the quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
GWW’s Q3 Operational Update
The cost of sales climbed 4.5% year over year to $2.67 billion. The gross profit rose 3.9% year over year to $1.7 billion. The gross margin was 39.2% in the quarter compared with the prior-year period’s 39.3%.
Selling, general and administrative expenses rose 4.7% year over year to $1.03 billion. Grainger’s operating income in the quarter was up 2.8% year over year to $686 million. The operating margin was 15.6% compared with 15.9% in the prior-year quarter.
Grainger’s Q3 Cash Flow & Balance Sheet Updates
The company had cash and cash equivalents of $1.45 billion at the end of the third quarter of 2024, up from $0.66 billion at the end of 2023. The cash flow from operating activities was $611 million in the third quarter of 2024 compared with $523 million in the prior-year quarter.
The long-term debt was $2.28 billion as of Sept. 30, 2024, compared with $2.27 billion as of Dec. 31, 2023. Grainger returned $328 million to shareholders through dividends and share buybacks in the reported quarter.
GWW’s 2024 Outlook
GWW expects net sales between $17.1 billion and $17.3 billion, updated from the prior stated $17.0-$17.3 billion. Sales growth is anticipated at 4-4.75%, updated from 3.2-5.2%. Daily sales growth is envisioned at 4.5-5.25% compared with the earlier mentioned 4-6%. EPS is expected to be $38.65-$39.35 compared with the prior stated $38.00-$39.50.
Grainger’s Price Performance
In the past year, Grainger’s shares have gained 49.4% compared with the industry’s growth of 19.3%.
Image Source: Zacks Investment Research
GWW’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Grainger’s Peer Performances
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported a fourth-quarter fiscal 2024 (ended on Aug. 31, 2024) adjusted EPS of $1.03, missing the Zacks Consensus Estimate of $1.08. The bottom line decreased 37% year over year.
MSC Industrial generated revenues of around $952 million, down 8% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $959 million.
SiteOne Landscape Supply, Inc. (SITE - Free Report) recorded an adjusted EPS of 97 cents in the third quarter of 2024, missing the Zacks Consensus Estimate of $1.18. The company posted earnings of $1.25 per share in the third quarter of 2023.
SITE registered revenues of $1.21 billion for the September-end quarter of 2024, surpassing the Zacks Consensus Estimate of $1.18 billion. The top line rose 2.4% year over year.
Industrial Services Stock Awaiting Results
Hillenbrand, Inc. (HI - Free Report) is set to release its fourth-quarter fiscal 2024 results on Nov. 13.
The Zacks Consensus Estimate for HI’s EPS is pegged at 93 cents for the fiscal fourth quarter, suggesting a decline of 17.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $796.8 million, indicating a year-over-year increase of 4.5%.