MSC Industrial (MSM) Buys SMRT's Intellectual Property Assets

MSC Industrial Direct Company, Inc. MSM announced that it acquired intellectual property assets from Schmitz Manufacturing Research & Technology LLC (“SMRT”) relating to its technology solutions for the U.S. manufacturing industry. This move will enable MSM to accelerate innovation across its competitive metalworking products and solutions by integrating SMTR's technical expertise.

SMRT is based in Knoxville, TN, and specializes in machining dynamics and mechanical vibrations. SMRT consults with industry and government partners, and has established itself as a global leader in mechanical, aerospace and manufacturing engineering.

With SMRT's intellectual property assets, MSM plans to develop and deploy technologies for the U.S. machinery sector that will reduce customers' manufacturing costs, boost capacity through speed improvements and enhance shop floor efficiency.

MSM has been active on the acquisition front. In January 2024, it acquired a metalworking distributor, KAR Industrial Inc. This move expands MSM’s metalworking footprint in Canada.

MSM reported second-quarter fiscal 2024 adjusted earnings per share of $1.18, beating the Zacks Consensus Estimate of $1.16. The bottom line fell 19% year over year. MSC Industrial generated revenues of around $935 million in the quarter under review, down 2.8% from $962 million in the year-ago quarter.

Price Performance

MSC Industrial’s shares have gained 25% in the past year compared with the industry’s growth of 26%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

MSC Industrial currently carries a Zacks Rank #4 (Sell).

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

The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% 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 72% in the past year.

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 $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.

Zacks Reveals ChatGPT "Sleeper" Stock

One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.

As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.

Download Free ChatGPT Stock Report Right Now >>

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

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

MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report

Proto Labs, Inc. (PRLB) : 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.