We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MSC Industrial Earnings Miss Estimates in Q2, Revenues Rise Y/Y
Read MoreHide Full Article
Key Takeaways
MSM reported Q2 EPS of 82 cents, missing estimates, but earnings rose 13.9% y/y.
MSC Industrial revenues rose 2.9% y/y to $918M but missed estimates; margins improved slightly.
MSM expects Q3 daily sales to grow 5-7% and adjusted operating margin between 9.7% and 10.3%.
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2026 (ended on Feb. 28, 2026) adjusted earnings per share (EPS) of 82 cents, missing the Zacks Consensus Estimate of 84 cents. The bottom line increased 13.9% year over year.
Including one-time items, the company reported an EPS of 76 cents compared with the year-ago quarter’s earnings of 70 cents.
MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise
MSC Industrial generated revenues of around $918 million in the quarter under review, up 2.9% from $935 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $934 million.
MSC Industrial’s Q2 Margins Rise Y/Y
The cost of goods sold increased 2.6% year over year to $540 million. Gross profit moved up 3.4% to $378 million. The gross margin was 41.1% compared with the year-ago quarter’s 41%.
Operating expenses rose 2.9% year over year to $310 million in the fiscal second quarter. Adjusted operating income amounted to $69 million, up 8.5% from the prior-year quarter. The adjusted operating margin was 7.15% in the reported quarter compared with the prior-year quarter’s 7.1%.
MSM’s Cash & Debt Position
MSC Industrial had cash and cash equivalents of $46.2 million at the end of the fiscal second quarter of 2026 compared with $56 million at the end of fiscal 2025. It generated a cash flow from operating activities of $124 million in the first half of fiscal 2026 compared with $156 million in the first half of fiscal 2025.
The company’s long-term debt was $194.5 million at the end of the reported quarter, up from $169 million at the fiscal 2025 end.
MSC Industrial’s Q3 Guidance
MSM expects third-quarter fiscal 2025 average daily sales to grow 5-7% from the year-ago quarter's actual. The adjusted operating margin is expected between 9.7% and 10.3% for the quarter.
MSM Stock’s Price Performance
The company’s shares have gained 26.9% in the past year compared with the industry’s growth of 2.1%.
W.W. Grainger, Inc. (GWW - Free Report) is expected to release first-quarter 2025 results on May 7.
The Zacks Consensus Estimate for Grainger’s earnings per share is pegged at $10.17 for the fiscal first quarter, implying growth of 3.1% from the year-ago reported figure. The consensus estimate for Grainger’s total revenues is pinned at $4.5 billion, indicating a year-over-year increase of 6.1%
Hudson Technologies, Inc. (HDSN - Free Report) is anticipated to release first-quarter 2025 results soon.
The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 5 cents for the first quarter, implying a decline of 16.7% from the year-ago reported figure. The consensus estimate for Hudson Industrial’s total revenues is pinned at $57 million, indicating a year-over-year increase of 3.1%.
SiteOne Landscape Supply, Inc. (SITE - Free Report) is expected to release first-quarter 2025 results soon.
The Zacks Consensus Estimate for SiteOne Landscape Supply’s loss per share is pegged at 52 cents for the fiscal first quarter. The company reported a loss of 61 cents in the year-ago quarter. The consensus estimate for SiteOne Landscape Supply’s total revenues is pinned at $981 million, indicating a year-over-year increase of 4.3%
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
MSC Industrial Earnings Miss Estimates in Q2, Revenues Rise Y/Y
Key Takeaways
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2026 (ended on Feb. 28, 2026) adjusted earnings per share (EPS) of 82 cents, missing the Zacks Consensus Estimate of 84 cents. The bottom line increased 13.9% year over year.
Including one-time items, the company reported an EPS of 76 cents compared with the year-ago quarter’s earnings of 70 cents.
MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise
MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. Quote
MSC Industrial generated revenues of around $918 million in the quarter under review, up 2.9% from $935 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $934 million.
MSC Industrial’s Q2 Margins Rise Y/Y
The cost of goods sold increased 2.6% year over year to $540 million. Gross profit moved up 3.4% to $378 million. The gross margin was 41.1% compared with the year-ago quarter’s 41%.
Operating expenses rose 2.9% year over year to $310 million in the fiscal second quarter. Adjusted operating income amounted to $69 million, up 8.5% from the prior-year quarter. The adjusted operating margin was 7.15% in the reported quarter compared with the prior-year quarter’s 7.1%.
MSM’s Cash & Debt Position
MSC Industrial had cash and cash equivalents of $46.2 million at the end of the fiscal second quarter of 2026 compared with $56 million at the end of fiscal 2025. It generated a cash flow from operating activities of $124 million in the first half of fiscal 2026 compared with $156 million in the first half of fiscal 2025.
The company’s long-term debt was $194.5 million at the end of the reported quarter, up from $169 million at the fiscal 2025 end.
MSC Industrial’s Q3 Guidance
MSM expects third-quarter fiscal 2025 average daily sales to grow 5-7% from the year-ago quarter's actual. The adjusted operating margin is expected between 9.7% and 10.3% for the quarter.
MSM Stock’s Price Performance
The company’s shares have gained 26.9% in the past year compared with the industry’s growth of 2.1%.
MSC Industrial’s Zacks Rank
MSM currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Industrial Services Stocks Awaiting Results
W.W. Grainger, Inc. (GWW - Free Report) is expected to release first-quarter 2025 results on May 7.
The Zacks Consensus Estimate for Grainger’s earnings per share is pegged at $10.17 for the fiscal first quarter, implying growth of 3.1% from the year-ago reported figure. The consensus estimate for Grainger’s total revenues is pinned at $4.5 billion, indicating a year-over-year increase of 6.1%
Hudson Technologies, Inc. (HDSN - Free Report) is anticipated to release first-quarter 2025 results soon.
The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 5 cents for the first quarter, implying a decline of 16.7% from the year-ago reported figure. The consensus estimate for Hudson Industrial’s total revenues is pinned at $57 million, indicating a year-over-year increase of 3.1%.
SiteOne Landscape Supply, Inc. (SITE - Free Report) is expected to release first-quarter 2025 results soon.
The Zacks Consensus Estimate for SiteOne Landscape Supply’s loss per share is pegged at 52 cents for the fiscal first quarter. The company reported a loss of 61 cents in the year-ago quarter. The consensus estimate for SiteOne Landscape Supply’s total revenues is pinned at $981 million, indicating a year-over-year increase of 4.3%