W.W. Grainger, Inc. Earnings: Fifth Consecutive Quarter of Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component W.W. Grainger, Inc. (NYSE:GWW) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for the industrial equipment wholesale company rose to $169.9 million ($2.34 per share) vs. $129.1 million ($1.73 per share) in the same quarter a year earlier. This marks a rise of 31.6% from the year earlier quarter.

Revenue: Rose 12.3% to $2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GWW beat the mean analyst estimate of $2.11 per share. Analysts were expecting revenue of $1.98 billion.

Quoting Management: “Our focus on delivering great service to customers through a broader product offering, an expanding sales force and a growing international platform, continues to generate strong sales and earnings performance,” said Chairman, President and Chief Executive Officer Jim Ryan.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.5%, 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 first quarter, net income rose 59.2% and in the fourth quarter of the last fiscal year, the figure rose 36.2%.

From the first quarter, the company’s current liabilities rose to $1.08 billion from $782 million.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 39 cents in the first quarter, by 11 cents in the fourth quarter of the last fiscal year, and by 17 cents in the third quarter of the last fiscal year.

Gross margins grew 1.2 percentage points to 43.1%. The growth seemed to be driven by increased revenue, as the figure rose 12.3% from the year earlier quarter while costs rose 10%.

Competitors to Watch: Fastenal Company (NASDAQ:FAST), Interline Brands, Inc. (NYSE:IBI), Anixter International Inc. (NYSE:AXE), WESCO International, Inc. (NYSE:WCC), Watsco, Incorporated (NYSE:WSO), Houston Wire & Cable Co. (NASDAQ:HWCC), Hudson Technologies, Inc. (NASDAQ:HDSN), Snap-on Incorporated (NYSE:SNA), and Record Electric SAECA (NYSE:REC).

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(Source: Xignite Financials)