W.W. Grainger, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component W.W. Grainger, Inc. (NYSE:GWW) will unveil its latest earnings on Tuesday, July 19, 2011. 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.

W.W. Grainger, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.11 per share, a rise of 27.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.94. Between one and three months ago, the average estimate moved up, and has risen from $2.09 during the last month. For the year, analysts are projecting profit of $8.66 per share, a rise of 27.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 39 cents, reporting net income of $2.18 per share against a mean estimate of profit of $1.79 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $1.98 billion in revenue this quarter, a rise of 11.2% from the year ago quarter. Analysts are forecasting total revenue of $7.89 billion for the year, a rise of 9.9% from last year’s revenue of $7.18 billion.

Analyst Ratings: Analysts are bullish on W.W. Grainger as seven analysts rate it as a buy, one rates it as a sell and seven rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 15.1%, 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% while it rose 36.2% in the fourth quarter of the last fiscal year and 4% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had risen $16.53 (11.6%) from $142.22 to $158.75. Shares have been on a negative streak of late, closing down every day between July 12, 2011 and July 13, 2011. The stock price saw one of its best stretches over the last year between January 3, 2011, and January 7, 2011, when shares rose for five-straight days, rising 5.2% (+$6.88) over that span. Shares are up $21.80 (+15.9%) year to date.

(Source: Xignite Financials)

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