MSC Industrial Direct Co. Earnings: Here’s Why Shares are Down Now

MSC Industrial Direct Co. Inc. (NYSE:MSM) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.43%.

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MSC Industrial Direct Co. Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.26% to $0.9 in the quarter versus EPS of $0.95 in the year-earlier quarter.

Revenue: Rose 0.45% to $565.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MSC Industrial Direct Co. Inc. reported adjusted EPS income of $0.9 per share. By that measure, the company missed the mean analyst estimate of $0.9. It missed the average revenue estimate of $572.35 million.

Quoting Management: Erik Gershwind, President and Chief Executive Officer, stated, “While demand from heavy industrial end markets and specifically the metalworking-related sectors has yet to rebound and continued at low levels, we remain pleased with the execution of our plan. Our focus on strategic growth initiatives like vending and e-commerce, including our newly launched mscdirect.com, continues to fuel share gain in our core market.”

Key Stats (on next page)…

Revenue decreased 2.08% from $577.49 million in the previous quarter. EPS decreased 10.89% from $1.01 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.17 to a profit $1.11. For the current year, the average estimate has moved down from a profit of $4.32 to a profit of $4.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)