W.W. Grainger Earnings: A Stock Up Big in a Down Market

S&P 500 (NYSE:SPY) component W.W. Grainger, Inc. (NYSE:GWW) reported net income above Wall Street’s expectations for the first quarter. W.W. Grainger, Inc. is a distributor of facilities maintenance products and provides services and related information used by businesses and institutions throughout North America.

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W.W. Grainger Earnings Cheat Sheet for the First Quarter

Results: Net income for the industrial equipment wholesale company rose to $158 million ($2.18/share) vs. $99.2 million ($1.31/share) YoY. A rise of 59.3% from the year earlier quarter.

Revenue: Rose 12.6% to $1.88 billion YoY.

Actual vs. Wall St. Expectations: GWW beat the mean analyst estimate of $1.79/share. Estimates ranged from $1.70 per share to $1.90 per share.

Quoting Management: “This was an exceptionally strong quarter for Grainger. Our investment in growth is paying off as demonstrated by our strong sales and earnings performance. Expanding product lines, providing new services that complement our products, investing further in eCommerce and increasing our sales force, are all contributing to gaining market share in NorthAmerica. In addition, we’re continuing to push into high-growth, emerging markets and the yield on these investments is improving,” said Chairman, President and Chief Executive Officer Jim Ryan.

Key Stats:
The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 19.5% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 36.2% and in the third quarter of the last fiscal year, the figure rose 4%.

Competitors to Watch: Applied Industrial Technologies, Inc. (NYSE:AIT), Fastenal Company (NASDAQ:FAST), and WESCO International Inc. (NYSE:WCC).

Today’s Performance: Shares of GWW are trading at $146.33, up 2.37% from the previous close.

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