MSC Industrial Earnings Beat Estimates in Q2, Revenues Decline Y/Y

MSC Industrial Direct Company, Inc. MSM reported second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Including one-time items, the company reported an EPS of 70 cents compared with the year-ago quarter’s $1.10.MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise  MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. QuoteMSM’s Average Daily Sales Fall Y/Y in Q2MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.MSC Industrial’s Q2 Margins Dip Y/YThe cost of goods sold decreased 3.7% year over year to $526 million. Gross profit moved down 3.7% to $365 million. The gross margin was 41% compared with the year-ago quarter’s 41.5%.Operating expenses rose 3.5% year over year to $301.6 million in the fiscal second quarter. Adjusted operating income amounted to $64 million, down 34.9% from the prior-year quarter. The adjusted operating margin was 7.1% in the reported quarter compared with the prior-year quarter’s 10.5%.MSM’s Cash & Debt PositionMSC Industrial had cash and cash equivalents of $41.3 million at the end of the fiscal second quarter of 2025 compared with $30 million at the end of fiscal 2024. It generated a cash flow from operating activities of $156 million in the first half of fiscal 2025 compared with $160 million in the first half of fiscal 2024.The company’s long-term debt was $305 million at the end of the reported quarter, up from $279 million at the fiscal 2024 end.MSC Industrial’s Q3 GuidanceMSM expects third-quarter fiscal 2025 average daily sales to decline 2% or remain flat compared with the year-ago quarter's actual. The adjusted operating margin is expected between 8.7% and 9.3% for the quarter.MSM Stock’s Price PerformanceThe company’s shares have lost 22.2% in the past year compared with the industry’s decline of 19.1%.  Image Source: Zacks Investment Research MSC Industrial’s Zacks RankMSM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Industrial Services Stocks Awaiting ResultsW.W. Grainger, Inc. GWW is expected to release its first-quarter 2024 results on May 1.The Zacks Consensus Estimate for Grainger’s earnings per share is pegged at $9.46 for the fiscal first quarter, implying a decline of 1.7% from the year-ago reported figure. The consensus estimate for Grainger’s total revenues is pinned at $4.3 billion, indicating a year-over-year increase of 2.4%Hillenbrand, Inc. HI is anticipated to release its second-quarter fiscal 2025 results soon. The Zacks Consensus Estimate for Hillenbrand’s earnings per share is pegged at 54 cents for the second fiscal quarter, implying a decline of 28.9% from the year-ago reported figure. The consensus estimate for Hillenbrand’s total revenues is pinned at $691 million, indicating a year-over-year dip of 12%.Hudson Technologies, Inc. HDSN is expected to release its first-quarter 2025 results soon. 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 Industrial’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