Grainger's first-quarter 2014 earnings per share (EPS) increased 4%
year over year to $3.07 per share, a first quarter record. The
company maintained its EPS guidance in the range of $12.10 $12.85
per share for 2014. Grainger will benefit in the long term from its
focus on expanding its sales force, product offerings and
acquisitions, as well as continued investment in e-commerce.
Furthermore, Grainger's sound balance sheet and cash flow allow the
company to invest in growth opportunities, raise dividends and
repurchase shares. However, the Canada segment continues to be
affected by a weak macroeconomic environment, unfavorable currency
exchange, lower commodity prices and a reduction in Canadian
exports. We have maintained our Neutral recommendation with a
target price of $263.
Incorporated in 1928, in the State of Illinois, W.W. Grainger
Inc. (GWW) is a leading North American distributor of material
handling equipment, safety and security supplies, lighting and
electrical products, power and hand tools, pumps and plumbing
supplies, cleaning and maintenance supplies, forestry and
agriculture equipment, building and home inspection supplies,
vehicle and fleet components, and various aftermarket components.
It also offers services comprising inventory management and energy
efficiency solutions. The company has a multi-channel business
model consisting of a network of branches, a field sales force,
direct marketing and Internet channels. Grainger has operating
facilities, both self-owned as well as leased across the U.S. and
Canada. It has nearly 710 branches, 33 distribution centers and
The company reports revenues under two business segments the
United States, which contributed 77% to total revenue in 2013 and
Canada with a contribution of 12%. The businesses from operating
units in Japan, Mexico, India, Puerto Rico, China, Panama and
Columbia and Fabory Group are all combined and included in Other
Businesses and are not individually considered as reportable
segments. The Other Businesses contributed nearly 11% to the
company's revenue for the quarter.
W.W. Grainger, Inc. (GWW): Read the Full Research
GRAINGER W W (GWW): Free Stock Analysis Report
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