Grainger (GWW) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

W.W. Grainger, Inc. GWW has reported earnings per share of $9.62 in first-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.

Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the Zacks Consensus Estimate of $4.27 billion. Daily sales increased 3.5% from the prior-year quarter. We predicted daily sales to increase 4.2%.

The High-Touch Solutions N.A. segment’s daily sales rose 3.4% in the quarter from the first quarter of 2023, driven by solid volume growth. Our model predicted year-over-year organic daily sales growth of 3.7%.

The Endless Assortment segment’s daily sales grew 3.7% in the quarter due to increased customer acquisition across the segment and enterprise customer growth at MonotaRO. The upside was partially offset by declining sales from non-core customers at Zoro. Our model predicted year-over-year organic daily sales growth of 8.1% for the quarter.

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

Operational Update

Cost of sales increased 4.5% year over year to $2.57 billion. The gross profit rose 2.1% year over year to $1.67 billion. The gross margin fell to 39.4% in the quarter from the prior-year period’s 39.9%.

Grainger’s operating income in the quarter was down 1.6% year over year to $669 million. The operating margin was 15.8% down from 16.6% in the prior-year quarter.

Financial Position

The company had cash and cash equivalents of $804 million at the end of the first quarter of 2024, up from $660 million at 2023-end. Cash flow from operating activities was $661 million in the first quarter of 2024 compared with $454 million in the prior-year quarter. Long-term debt was $1.78 billion as of Mar 31, 2024, compared with $2.27 billion as of Dec 31, 2023. Grainger returned $360 million to shareholders through dividends and share buybacks in the first quarter.

2024 Outlook

Grainger expects net sales between $17.2 billion and $17.7 billion. Sales growth is anticipated to be 4.3-7.3%. Daily sales growth is envisioned at 4-7%. Earnings per share are expected to be $38.00-$40.50.

Price Performance

In the past year, Grainger’s shares have gained 44% compared with the industry’s growth of 11.5%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Other Stocks to Consider

Grainger currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the Industrial Products sector are Applied Industrial Technologies AIT, Chart Industries, Inc. GTLS and Cadre Holdings, Inc. CDRE. AIT currently sports a Zacks Rank #1 (Strong Buy), and GTLS and CDRE carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.49 per share, which indicates year-over-year growth of 7.8%. Estimates have moved north by 1% in the past 60 days. The company’s shares have gained 35.4% in the past year.

The Zacks Consensus Estimate for Chart Industries’ 2024 earnings is pegged at $11.98 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 93.6%. The company has a trailing four-quarter average earnings surprise of 75.9%. GTLS shares have gained 12.2% in the past year.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.18 per share. The consensus estimate for 2024 earnings has moved 7% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 53.1% in the past year.

Free – 5 Dividend Stocks to Fund Your Retirement

Zacks Investment Research has released a Special Report to help you prepare for retirement with 5 diverse stocks that pay whopping dividends. They cut across property management, upscale outlets, financial institutions, and a couple of strong energy producers.

5 Dividend Stocks to Include in Your Retirement Strategy is packed with unconventional wisdom and insights you won’t get from your neighborhood financial planner.

Download Now – Today It’s FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

Chart Industries, Inc. (GTLS) : Free Stock Analysis Report

Cadre Holdings, Inc. (CDRE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.