Credit: Shutterstock photoW.W. Grainger, Inc.GWW is a leading North American distributor of material-handling equipment, safety and security supplies. The company remains focused on providing the lowest total cost maintenance, repair and operating (MRO) solution to select customer groups.
Grainger's results continue to bear the brunt of unfavorable foreign currency translation, sluggish industrial markets as well as the deteriorating macroeconomic environment in Canada. Moreover, lower oil prices had its toll on the segment's results given that about 20% of the Canada business is directly dependent on the oil and gas markets. Nevertheless, Grainger will benefit from expansion of its product offerings and sales through continuous investment in e-commerce and grow through acquisitions.
Let's have a quick look on Grainger's first-quarter 2016 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Grainger for the first quarter has been revised downward over the past week and month. Coming to the earnings surprise, Grainger posted a positive average earnings surprise of 1.10% in the last four trailing quarters.
Earnings
Grainger posted earnings of $3.18 per share in the first-quarter of 2016. Earnings surpassed the Zacks Consensus Estimate of $2.86. Investors should note that these figures take out special items.
Revenue
Grainger posted revenues of $2,506 million, just ahead of the Zacks Consensus Estimate for revenues of $2,500 million.
Key Stats To Note
Grainger slashed its sales growth guidance to 0% to 6% for fiscal 2016 and earnings per share to $11.00 to $12.80.
Zacks Rank
Currently, Grainger has a Zacks Rank #3 (Hold), but that could change following Grainger's earnings report which was just released.
Market Reaction
Grainger's shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Grainger's earnings report later!
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GRAINGER W W (GWW): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
