W.W. Grainger, Inc. (NYSE:GWW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
W.W. Grainger, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 15.21% to $3.03 in the quarter versus EPS of $2.63 in the year-earlier quarter.
Revenue: Rose 5.88% to $2.38 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: W.W. Grainger, Inc. reported adjusted EPS income of $3.03 per share. By that measure, the company beat the mean analyst estimate of $2.96. It missed the average revenue estimate of $2.4 billion.
Quoting Management: “Our solid performance reflects the continued focus, dedication and hard work of our Grainger team,” said Chairman, President and Chief Executive Officer Jim Ryan. “We will continue to invest in helping our customers be successful by adding more products, sales people, inventory management solutions and eCommerce capabilities to further our leading position in the MRO industry,” Ryan added.
Key Stats (on next page)…
Revenue increased 4.44% from $2.28 billion in the previous quarter. EPS increased 3.06% from $2.94 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 $3.17 to a profit $3.16. For the current year, the average estimate has moved down from a profit of $11.94 to a profit of $11.93 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)