W.W. Grainger, Inc. GWW has reported adjusted earnings per share (EPS) of $9.71 in fourth-quarter 2024, missing the Zacks Consensus Estimate of $9.75.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Grainger restated EPS for the fourth quarter of 2023 to $7.89, including the adjustment for the loss on sale of Grainger's subsidiary, E&R Industrial Sales, Inc., completed in that quarter. GWW previously reported adjusted EPS of $8.33 for the quarter, which excluded the impacts of the sale.
Grainger’s quarterly sales rose 5.9% year over year to $4.23 billion. However, the top line missed the Zacks Consensus Estimate of $4.24 billion. Daily sales increased 4.2% from the prior-year quarter. We predicted daily sales to increase 3.8%.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Grainger’s Q4 Segmental Performance
The High-Touch Solutions N.A. segment’s daily sales rose 2.3% in the quarter from the fourth quarter of 2023 due to continued growth across all geographies. Our model predicted year-over-year organic daily sales growth of 5%.
The Endless Assortment segment’s daily sales grew 13.3% in the quarter due to increased customer acquisitions across the segment and enterprise customer growth at MonotaRO. Our model predicted year-over-year organic daily sales growth of 8.7% for the quarter.
GWW’s Q4 Operational Update
The cost of sales climbed 5.1% year over year to $2.56 billion. The gross profit rose 7.2% year over year to $1.68 billion. The gross margin came in at 39.6% in the quarter compared with the prior-year period’s 39.1%.
Selling, general and administrative expenses rose 3.7% year over year to $1.04 billion. Grainger’s operating income in the quarter was up 19% year over year to $663 million. The operating margin came in at 15% compared with 13.9% in the prior-year quarter.
Grainger’s Q4 Cash Flow & Balance Sheet Updates
The company had cash and cash equivalents of $1.04 billion at the end of 2024, up from $0.67 billion at 2023-end. Cash flow from operating activities was $2.11 billion in 2024 compared with $2.03 billion last year.
The long-term debt was $2.28 billion as of Dec. 31, 2024, compared with $2.27 million as of Dec. 31, 2023. Grainger returned $1.6 billion to shareholders via dividends and share buybacks through 2024. The capital expenditure for the year was $541 million, higher than $445 million in 2023.
GWW’s 2024 Performance
Adjusted EPS rose 23.6% year over year to $38.96 in 2024, which beat the Zacks Consensus Estimate of $38.95. Including one-time items, earnings were $38.71 compared with $36.23 in 2023. The figure came in line with the company’s expected EPS of $38.65-$39.35.
Sales improved 4.2% year over year to $17.17 billion and came within the company’s guidance of $17.1-$17.3 billion. The top line met the Zacks Consensus Estimate. Sales rose 4.7% on a daily, on a constant-currency basis.
Grainger’s 2025 Outlook
The company expects net sales between $17.6 billion and $18.1 billion. Sales growth is expected to be 2.7-5.2%. Daily sales growth is envisioned at 4-6.5%. Earnings per share are expected to be $39.00-$41.50.
GWW Stock’s Price Performance
In the past year, GWW shares have gained 23% compared with the industry’s 5.9% growth.
Image Source: Zacks Investment Research
Grainger’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GWW’s Peer Performances
MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2025 (ended on Nov. 30, 2024) adjusted earnings per share of 86 cents, beating the Zacks Consensus Estimate of 73 cents.
The bottom line marked a 31% plunge from earnings of $1.25 in the year-ago quarter. The downfall was attributed to lower sales, higher operating expenses and elevated interest expenses.
MSM generated sales of $928.5 million in the quarter under review, down 2.7% from the year-ago quarter. Revenues were impacted by weak demand, unfavorable foreign exchange impacts and negative impacts of pricing. The top line, however, surpassed the Zacks Consensus Estimate of $905 million.
Industrial Services Stocks Awaiting Results
Hillenbrand, Inc. HI is set to release its first-quarter fiscal 2025 results on Feb. 5.
The Zacks Consensus Estimate for HI’s EPS for the fiscal first quarter is pegged at 54 cents, suggesting a decline of 21.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $695 million, indicating a year-over-year decrease of 10%.
SiteOne Landscape Supply, Inc. SITE is set to release its fourth-quarter 2024 results on Feb. 12.
The Zacks Consensus Estimate for SITE’s loss per share is pegged at 28 cents for the fourth quarter. The company incurred a loss of 8 cents in the year-ago quarter. The Zacks Consensus Estimate for total revenues is pinned at $1.01 billion, indicating a year-over-year increase of 4.3%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report
Hillenbrand Inc (HI) : Free Stock Analysis Report
SiteOne Landscape Supply, Inc. (SITE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
