Core Viewpoint - W.W. Grainger, Inc. reported strong earnings per share (EPS) of $9.76 for Q2 2024, exceeding expectations, driven by demand in key segments [1] Financial Performance - Quarterly revenues increased by 3.1% year over year to $4.31 billion, but fell short of the consensus estimate of $4.35 billion [2] - Daily sales rose 3.1% compared to the prior year, below the predicted increase of 4.6% [2] - The High-Touch Solutions N.A. segment saw daily sales growth of 3.1%, while the Endless Assortment segment's daily sales grew by 3.3%, both below expectations [3] Operational Update - Cost of sales rose 3.2% year over year to $2.62 billion, with gross profit increasing by 3% to $1.69 billion, maintaining a gross margin of 39.3% [4] - Operating income decreased by 1.8% year over year to $649 million, with an operating margin of 15.1% compared to 15.8% in the previous year [4] Financial Position - Cash and cash equivalents increased to $769 million from $660 million year-over-year, while cash flow from operating activities was $411 million, down from $450 million [5] - Long-term debt decreased to $1.78 billion from $2.27 billion at the end of 2023, with $345 million returned to shareholders through dividends and share buybacks [5] 2024 Outlook - The company expects net sales between $17 billion and $17.3 billion, with sales growth anticipated at 3.2-5.2% and daily sales growth at 4-6% [6] - EPS is projected to be between $38.00 and $39.50, revised from earlier estimates [6] Price Performance - Grainger's shares have increased by 35.9% over the past year, significantly outperforming the industry growth of 0.8% [7]

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].

Core Insights - Grainger emphasizes its commitment to being responsible stewards for its stakeholders, including employees, customers, shareholders, and the environment [1] - The company released its 2024 Environmental, Social and Governance (ESG) Report, highlighting its focus on sustainability and community engagement [6] Customer Sustainability Solutions - Grainger offers tailored products and services to help customers from various industries meet their sustainability goals, comply with safety regulations, and manage resources effectively [1] Company Overview - W.W. Grainger, Inc. is a leading distributor of maintenance, repair, and operating (MRO) products, serving over 4.5 million customers globally with 2023 sales of $16.5 billion [4] - The company operates two business models: High-Touch Solutions, offering approximately 2 million MRO products, and Endless Assortment, providing access to over 13 million products through Zoro.com and more than 22 million products via MonotaRO.com [4] Environmental Commitment - Grainger has reduced its global absolute Scope 1 & Scope 2 emissions by 31% since 2018, surpassing its previous 2030 target of 30% reduction seven years early [8] - The company has updated its 2030 target to a 50% reduction in Scope 1 & 2 emissions, aiming to achieve this through investments in solar energy, hydrogen fuel cell technology, and building management systems [8] Diversity and Inclusion - Grainger's Diversity Solutions assist customers in meeting diversity goals through a combination of products, services, and a network of diverse suppliers [7] - The company promotes an equitable culture by integrating inclusive principles into hiring, training, and development processes, supported by eight Business Resource Groups [9] Workplace Safety - Grainger integrates its Environmental, Health and Safety (EHS) program into all business operations, focusing on safe people, processes, environments, and product handling [10] - In 2023, the company conducted over 42,000 safety observations in the U.S. and Canada to ensure workplace safety aligns with EHS priorities [10]

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]

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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 ...