Grainger Earnings Surpass Estimates in Q1, Revenues Rise Y/Y

W.W. Grainger, Inc. GWW has reported earnings per share of $9.86 in first-quarter 2025, beating the Zacks Consensus Estimate of $9.46. The bottom line improved 2% year over year.Grainger’s quarterly revenues rose 1.7% year over year to $4.31 billion. The top line missed the Zacks Consensus Estimate of $4.33 billion. Daily sales increased 3.3% from the prior-year quarter. We predicted daily sales to increase 2.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)W.W. Grainger, Inc. Price, Consensus and EPS Surprise  W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. QuoteGrainger’s Q1 Segmental PerformanceThe High-Touch Solutions N.A. segment’s daily sales rose 1.3% in the quarter from the first quarter of 2024, driven by volume growth across all geographies and a favorable product mix. Our model predicted year-over-year organic daily sales growth of 1.7%.The Endless Assortment segment’s daily sales grew 12% in the quarter due to increased solid performance at MonotaRO and Zoro. Our model predicted year-over-year organic daily sales growth of 6.7% for the quarter.GWW’s Q1 Gross Margin Rises Y/YCost of sales increased 1.1% year over year to $2.6 billion. The gross profit rose 2.5% year over year to $1.71 billion. The gross margin moved to 39.7% in the quarter from the prior-year period’s 39.4%.GWW’s operating income in the quarter rose 0.4% year over year to $672 million. The operating margin was 15.6%, down from 15.8% in the prior-year quarter.Grainger’s Q1 Cash Flow & Balance Sheet UpdatesThe company had cash and cash equivalents of $0.67 billion at the end of the first quarter of 2025, down from $1.04 billion at 2024-end. The cash flow from operating activities was $646 million in the first quarter of 2025 compared with $661 million in the prior-year quarter. Long-term debt was $2.28 billion as of March 31, 2025, fairly flat from Dec. 31, 2024. Grainger returned $380 million to shareholders through dividends and share buybacks in the first quarter.GWW Reaffirms 2025 OutlookThe company continues to expect 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 at $39.00-$41.50.Grainger Stock’s Price PerformanceIn the past year, the company’s shares have gained 11.8% against the industry’s 8.5% decline.  Image Source: Zacks Investment Research GWW’s Zacks RankGrainger currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Grainger’s Peer PerformancesMSC Industrial Direct Company, Inc. MSM reported second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year. MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. MSC Industrial’s top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.Hillenbrand, Inc. HI posted second-quarter fiscal 2025 adjusted earnings per share of 60 cents, beating the Zacks Consensus Estimate of 54 cents. The bottom line decreased 21% year over year.Hillenbrand generated revenues of around $716 million in the quarter under review, down 8.8% from $785 million in the year-ago quarter. Hillenbrand’s top line beat the Zacks Consensus Estimate of $691 million.Industrial Services Stock Awaiting ResultsHudson Technologies, Inc. HDSN is expected to release first-quarter 2025 results on May 7. The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 1 cent for the first quarter, implying a decline of 95% from the year-ago reported figure. The consensus estimate for Hudson’s total revenues is pinned at $47 billion, indicating a year-over-year decrease of 28%.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.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report Hudson Technologies, Inc. (HDSN): Free Stock Analysis Report Hillenbrand Inc (HI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks