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Grainger Earnings Surpass Estimates in Q1, Revenues Rise Y/Y

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W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share of $9.86 in first-quarter 2025, beating the Zacks Consensus Estimate of $9.46. The bottom line improved 2% year over year.

Grainger’s quarterly revenues rose 1.7% year over year to $4.31 billion. The top line missed the Zacks Consensus Estimate of $4.33 billion. Daily sales increased 3.3% from the prior-year quarter. We predicted daily sales to increase 2.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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

 

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 Q1 Segmental Performance

The High-Touch Solutions N.A. segment’s daily sales rose 1.3% in the quarter from the first quarter of 2024, driven by volume growth across all geographies and a favorable product mix. Our model predicted year-over-year organic daily sales growth of 1.7%.

The Endless Assortment segment’s daily sales grew 12% in the quarter due to increased solid performance at MonotaRO and Zoro. Our model predicted year-over-year organic daily sales growth of 6.7% for the quarter.

GWW’s Q1 Gross Margin Rises Y/Y

Cost of sales increased 1.1% year over year to $2.6 billion. The gross profit rose 2.5% year over year to $1.71 billion. The gross margin moved to 39.7% in the quarter from the prior-year period’s 39.4%.

GWW’s operating income in the quarter rose 0.4% year over year to $672 million. The operating margin was 15.6%, down from 15.8% in the prior-year quarter.

Grainger’s Q1 Cash Flow & Balance Sheet Updates

The company had cash and cash equivalents of $0.67 billion at the end of the first quarter of 2025, down from $1.04 billion at 2024-end. The cash flow from operating activities was $646 million in the first quarter of 2025 compared with $661 million in the prior-year quarter. Long-term debt was $2.28 billion as of March 31, 2025, fairly flat from Dec. 31, 2024. Grainger returned $380 million to shareholders through dividends and share buybacks in the first quarter.

GWW Reaffirms 2025 Outlook

The company continues to expect net sales between $17.6 billion and $18.1 billion. Sales growth is expected to be 2.7-5.2%. Daily sales growth is envisioned at 4-6.5%. Earnings per share are expected at $39.00-$41.50.

Grainger Stock’s Price Performance

In the past year, the company’s shares have gained 11.8% against the industry’s 8.5% decline.

 

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GWW’s Zacks Rank

Grainger 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 second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year. 

MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. MSC Industrial’s top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.

Hillenbrand, Inc. (HI - Free Report) posted second-quarter fiscal 2025 adjusted earnings per share of 60 cents, beating the Zacks Consensus Estimate of 54 cents. The bottom line decreased 21% year over year.

Hillenbrand generated revenues of around $716 million in the quarter under review, down 8.8% from $785 million in the year-ago quarter. Hillenbrand’s top line beat the Zacks Consensus Estimate of $691 million.

Industrial Services Stock Awaiting Results

Hudson Technologies, Inc. (HDSN - Free Report) is expected to release first-quarter 2025 results on May 7. 

The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 1 cent for the first quarter, implying a decline of 95% from the year-ago reported figure. The consensus estimate for Hudson’s total revenues is pinned at $47 billion, indicating a year-over-year decrease of 28%.

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