Core Viewpoint - W.W. Grainger reported quarterly earnings of $9.76 per share, exceeding the Zacks Consensus Estimate of $9.58 per share, and showing an increase from $9.28 per share a year ago, indicating a positive earnings surprise of 1.88% [1] Financial Performance - The company achieved revenues of $4.31 billion for the quarter ended June 2024, which fell short of the Zacks Consensus Estimate by 0.96%, but represented an increase from $4.18 billion year-over-year [2] - Over the last four quarters, W.W. Grainger has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - W.W. Grainger shares have appreciated approximately 17.9% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $10.29, with projected revenues of $4.46 billion, while the estimate for the current fiscal year is $39.19 on revenues of $17.39 billion [7] - The outlook for the Industrial Services industry, where W.W. Grainger operates, is currently in the bottom 10% of Zacks industries, which may impact the stock's performance [8]

Core Insights - Grainger reported second quarter sales of $4.3 billion, reflecting a 3.1% increase year-over-year, and a 5.1% increase on a daily, organic constant currency basis [1][3] - The company achieved a diluted EPS of $9.51 on a reported basis, up 2.5%, and $9.76 on an adjusted basis, up 5.2% compared to the same quarter in 2023 [1][7] - Grainger narrowed its 2024 earnings guidance, projecting total sales growth of 4.0% to 6.0% and adjusted diluted EPS of $38.00 to $39.50 [1][10] Financial Performance - Net sales for Q2 2024 were $4,312 million, up from $4,182 million in Q2 2023, marking a 3.1% increase [2][16] - Gross profit for the quarter was $1,694 million, a 3.0% increase from $1,644 million in Q2 2023, maintaining a gross profit margin of 39.3% [2][5] - Operating earnings were reported at $649 million, down 1.8% from $661 million in Q2 2023, with an operating margin of 15.1% [2][6] Segment Performance - In the High-Touch Solutions - N.A. segment, sales increased by 3.1% on a reported basis and 3.7% on a daily, organic constant currency basis [4] - The Endless Assortment segment saw daily sales rise by 3.3%, or 11.7% on a daily, constant currency basis, driven by strong performance from core B2B customers [4] Cash Flow and Shareholder Returns - The company generated $411 million in operating cash flow and returned $345 million to shareholders through dividends and share repurchases [1][9] - Free cash flow for the quarter was reported at $335 million after capital expenditures of $76 million [9][28] Guidance Update - Grainger updated its 2024 guidance, projecting net sales between $17.0 billion and $17.3 billion, with adjusted diluted EPS revised to a range of $38.00 to $39.50 [10][11]

Core Viewpoint - W.W. Grainger (GWW) is expected to report quarterly earnings of $9.58 per share, a 3.2% increase year-over-year, with revenues projected at $4.35 billion, reflecting a 4.1% increase compared to the same period last year [1] Earnings Projections - Analysts have revised the consensus EPS estimate 0.1% lower over the last 30 days, indicating a reevaluation of initial estimates [7] - The 'Total Reported Growth' is projected to be 3.9%, down from 9% reported in the same quarter last year [5] - 'Operating earnings (losses)- Endless Assortment' are expected to be $57.45 million, down from $65 million in the previous year [6] Revenue Estimates - 'Net Sales- Other' is estimated to reach $78.49 million, indicating a year-over-year change of +3.3% [4] - 'Net Sales- High-Touch Solutions N.A.' is forecasted to be $3.49 billion, reflecting a +4.2% change from the year-ago quarter [9] - 'Net Sales- Endless Assortment' is projected to be $775.89 million, also showing a year-over-year change of +3.3% [10] Operating Earnings - 'Operating earnings (losses)- High-Touch Solutions N.A.' are expected to reach $610.42 million, slightly up from $600 million reported in the same quarter last year [11] Market Performance - W.W. Grainger shares have increased by +7.6% in the past month, contrasting with the Zacks S&P 500 composite's -0.2% movement [7]

Core Viewpoint - W.W. Grainger (GWW) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in recent quarters [1][3]. Earnings Performance - W.W. Grainger has consistently exceeded earnings estimates, with an average surprise of 2.08% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $9.62 per share, surpassing the Zacks Consensus Estimate of $9.58 per share by 0.42% [5]. - For the previous quarter, W.W. Grainger's earnings were $8.33 per share against an expected $8.03, resulting in a surprise of 3.74% [5]. Earnings ESP and Analyst Sentiment - The company currently has an Earnings ESP of +0.35%, indicating a positive outlook from analysts regarding its near-term earnings potential [3]. - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a strong likelihood of another earnings beat [3][6]. Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8].

"At Grainger, doing the right thing is critical to our ability to be good stewards for our people, our customers, our shareholders and the environment," said D.G. Macpherson, Chairman and CEO. "Whether supporting fulfilling careers and strengthening our inclusive culture for our team members, helping our customers achieve their sustainability goals or partnering in our communities to build a better future, we take our responsibility seriously to make the things that matter better." Customer Sustainability S ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [6]. Core Insights - The company exhibits strong organic growth driven by acquisitions, which contribute to long-term growth potential. From 2009 to 2023, the company's revenue increased by 165%, with volume contributing nearly 80% to this growth [2][6]. - The stock price performance is closely linked to macroeconomic conditions, with periods of strong performance aligning with economic recovery phases, while downturns correspond to economic crises [2][6]. - The company is expected to achieve revenue growth of 4.4%, 6.1%, and 7.0% for the years 2024, 2025, and 2026, respectively, with corresponding net profit growth of 2.2%, 9.6%, and 10.3% [2][6]. Financial Forecasts - Revenue projections for 2024, 2025, and 2026 are $17,194 million, $18,239 million, and $19,539 million, respectively, with year-over-year growth rates of 4.4%, 6.1%, and 7.0% [2][28]. - Net profit forecasts for the same years are $1,870 million, $2,050 million, and $2,260 million, with growth rates of 2.2%, 9.6%, and 10.3% [2][28]. - The price-to-earnings (P/E) ratios are projected to be 24, 22, and 20 for 2024, 2025, and 2026, respectively [2][28].

Company Overview - W.W. Grainger Inc. is a broad line, business-to-business distributor of maintenance, repair, and operating (MRO) products and services, incorporated in 1928 [11] - The company's operations are primarily in North America, Japan, and the U.K., serving a wide array of industries including government, manufacturing, transportation, commercial, and contractors [11] Financial Performance - W.W. Grainger has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance metrics [12] - The company is forecasted to achieve year-over-year earnings growth of 7.3% for the current fiscal year [12] - The Zacks Consensus Estimate for fiscal 2024 has increased by $0.09 to $39.34 per share, with three analysts revising their earnings estimates higher in the last 60 days [12] - W.W. Grainger boasts an average earnings surprise of 3.6% [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, W.W. Grainger is recommended as a potential investment opportunity for growth investors [13]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as we ...

W.W. Grainger (GWW) reported $4.24 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 3.5%. EPS of $9.62 for the same period compares to $9.61 a year ago.The reported revenue represents a surprise of -0.81% over the Zacks Consensus Estimate of $4.27 billion. With the consensus EPS estimate being $9.58, the EPS surprise was +0.42%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Financial Performance - Net sales for Q1 2024 increased to $4,235 million, up 3.5% from $4,091 million in Q1 2023[11] - Gross profit for Q1 2024 was $1,668 million, compared to $1,634 million in Q1 2023, reflecting a gross margin of 39.4%[11] - Operating earnings decreased slightly to $669 million in Q1 2024 from $680 million in Q1 2023[11] - Net earnings attributable to W.W. Grainger, Inc. for Q1 2024 were $478 million, down from $488 million in Q1 2023[11] - Comprehensive earnings attributable to W.W. Grainger, Inc. for Q1 2024 were $443 million, down from $492 million in Q1 2023[14] - Diluted earnings per share for the three months ended March 31, 2024, was $9.62, slightly up from $9.61 in the same period of 2023[77] - Daily net sales for the three months ended March 31, 2024, were $66.2 million, reflecting a 3.5% increase compared to $63.9 million in the same period of 2023[72] - Daily organic constant currency net sales increased by 4.9% to $67.1 million in Q1 2024, compared to $65.2 million in Q1 2023[81] Cash Flow and Liquidity - Cash and cash equivalents increased to $804 million as of March 31, 2024, compared to $660 million at the end of 2023[17] - Net cash provided by operating activities for Q1 2024 was $661 million, significantly higher than $454 million in Q1 2023[19] - The company paid cash dividends of $105 million in Q1 2024, up from $87 million in Q1 2023[19] - Cash and cash equivalents as of March 31, 2024, were $804 million, up from $660 million as of December 31, 2023, with total available liquidity of approximately $2.1 billion[94] Assets and Liabilities - Total assets rose to $8,400 million as of March 31, 2024, up from $8,147 million at the end of 2023[17] - The Company reported a total debt of $2.284 billion as of March 31, 2024, compared to $2.300 billion as of December 31, 2023[42] - Total debt as a percentage of total capitalization was 39.4% as of March 31, 2024, down from 40.1% at the end of 2023, indicating improved financial flexibility[99] - The carrying amount of property, buildings, and equipment was $3.754 billion as of March 31, 2024, an increase from $3.718 billion as of December 31, 2023[37] - Goodwill decreased to $364 million as of March 31, 2024, from $370 million as of December 31, 2023, with no impairments recorded during the period[39] Expenses - Selling, general and administrative (SG&A) expenses increased by 5% to $999 million for the three months ended March 31, 2024, compared to $954 million in the same period of 2023[75] - Selling, general and administrative (SG&A) expenses rose to $813 million, a 4.9% increase from $775 million in Q1 2023, primarily due to higher marketing and payroll expenses[86] Market and Economic Conditions - The Company continues to monitor macroeconomic conditions, including inflation and potential recession impacts, which may affect its operations and financial results[68] - The company continues to face risks from inflation, higher product costs, and macroeconomic pressures[110] - Grainger's responses to market pressures and competitive pricing are critical to maintaining gross profit margins[110] - The Company reported no changes in internal control over financial reporting for the quarter ended March 31, 2024[115] - There have been no material changes to the risk factors previously disclosed in the 2023 Form 10-K[119] Shareholder Returns - The Company declared a quarterly dividend of $2.05 per share, payable on June 1, 2024, to shareholders of record on May 13, 2024[61] - Grainger's share repurchase program authorized the repurchase of up to 5 million shares with no expiration date, replacing the previous program from April 2021[120] - A total of 300,443 shares were purchased in the first quarter of 2024 at an average price of $950.00 per share[120] Risk Management - Forward-looking statements indicate that the company expects to face risks and uncertainties that could impact future results[108][109] - Grainger's primary market risk exposures include changes in foreign currency exchange and interest rates, with no material changes reported from the previous year[113] - The company has not experienced any major loss of customers or disruption in supply sources recently[110] - Grainger is committed to executing its environmental, social, and governance initiatives despite ongoing market challenges[110]