Financial Performance - Net sales for Q3 2024 reached $4,388 million, a 4.3% increase from $4,208 million in Q3 2023[5] - Gross profit for Q3 2024 was $1,720 million, up from $1,655 million in Q3 2023, reflecting a gross margin of 39.2%[5] - Operating earnings increased to $686 million in Q3 2024, compared to $667 million in Q3 2023, with an operating margin of 15.6%[5] - Net earnings attributable to W.W. Grainger, Inc. for Q3 2024 were $486 million, a rise from $476 million in Q3 2023, resulting in diluted earnings per share of $9.87[5] - Comprehensive earnings attributable to W.W. Grainger, Inc. for Q3 2024 were $524 million, compared to $441 million in Q3 2023[7] - Net earnings for the three months ended September 30, 2023, were $493 million, compared to $490 million for the same period in 2022, representing a year-over-year increase of 0.6%[14] - Diluted earnings per share for Q3 2024 were $9.87, a 4.7% increase from $9.43 in Q3 2023[105] - For the nine months ended September 30, 2024, net earnings attributable to W.W. Grainger, Inc. were $1,446 million, reflecting a 0.8% increase compared to the prior year[107] - Diluted earnings per share for the same period increased by 3.3% to $29.25[107] Cash and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $1,448 million, significantly higher than $660 million at the end of 2023[10] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,683 million, compared to $1,427 million for the same period in 2023[12] - The company reported a decrease in cash used in financing activities to $615 million for the nine months ended September 30, 2024, from $839 million in the prior year, primarily due to the issuance of long-term debt[113] - Working capital as of September 30, 2024, was $3,112 million, an increase of $34 million compared to $3,078 million as of December 31, 2023[114] - The company plans to return excess cash to shareholders through cash dividends and share repurchases, funded by cash flows generated from operations[109] Debt and Capital Structure - Total debt increased from $2,300 million as of December 31, 2023, to $2,776 million as of September 30, 2024, reflecting the issuance of $500 million in unsecured 4.45% senior notes[36][38] - Total debt as a percent of total capitalization increased to 41.9% as of September 30, 2024, from 40.1% as of December 31, 2023[115] - The company incurred debt issuance costs related to its Senior Notes, with cumulative unamortized costs of $23 million as of September 30, 2024[39] Shareholder Returns - The company declared a quarterly dividend of $2.05 per share, payable on December 1, 2024[57] - The company reported a total of $739 million in treasury stock purchases during Q3 2024[12] - Grainger repurchased a total of 233,609 shares in Q3 2024 at an average price of $961.49 per share[132] - The company has 4,746,710 shares remaining under its share repurchase program authorized on April 24, 2024[134] Operational Metrics - Daily net sales for Q3 2024 were $67.5 million, a slight decrease of 2.6% from $67.9 million in Q3 2023[69] - The revenue breakdown for the three months ended September 30, 2024, shows that manufacturing accounted for 30% of total company revenue, consistent with the previous year[26] - High-Touch Solutions N.A. segment reported net sales of $3,515 million, a 3.3% increase from $3,403 million in Q3 2023[76] - Endless Assortment segment achieved net sales of $791 million, up from $732 million, marking an increase of 8.1%[53] Expenses - Selling, general and administrative expenses rose to $1,034 million, a 4.7% increase compared to $988 million in the same quarter last year[72] - SG&A expenses for the nine months ended September 30, 2024, were $3,078 million, an increase of $153 million, or 5%, with SG&A leverage decreasing 40 basis points compared to the same period in 2023[88] Taxation - The effective tax rate for Q3 2024 was 24.8%, compared to 24.4% in Q3 2023[73] - Grainger's effective tax rate for the nine months ended September 30, 2024, was 24.0%[107] Corporate Governance and Risk Management - There were no material changes in Grainger's internal control over financial reporting for the quarter ended September 30, 2024[128] - Grainger's disclosure controls and procedures were evaluated as effective by the CEO and CFO as of the end of the reporting period[127] - There have been no material changes to the risk factors previously disclosed in the 2023 Form 10-K[131] - The company has not reported any legal proceedings updates in this quarter[130]

Core Viewpoint - W.W. Grainger, Inc. reported mixed financial results for Q3 2024, with earnings per share (EPS) of $9.87, slightly below expectations, but showing a year-over-year improvement of 4.7% driven by strong segment performances [1][2]. Financial Performance - Quarterly revenues increased by 4.3% year over year to $4.39 billion, but fell short of the Zacks Consensus Estimate of $4.41 billion [2]. - Daily sales rose by 2.6% compared to the prior-year quarter, which was below the predicted growth of 2.8% [2]. Segment Performance - The High-Touch Solutions N.A. segment saw daily sales growth of 1.7% year over year, supported by broad-based gains across customer end markets [3]. - The Endless Assortment segment experienced a significant daily sales increase of 6.4%, attributed to customer acquisitions and enterprise customer growth at MonotaRO [4]. Operational Metrics - Cost of sales rose by 4.5% year over year to $2.67 billion, while gross profit increased by 3.9% to $1.7 billion, resulting in a gross margin of 39.2% [5]. - Selling, general and administrative expenses increased by 4.7% to $1.03 billion, with operating income up 2.8% to $686 million, leading to an operating margin of 15.6% [5]. Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 2024 were $1.45 billion, up from $0.66 billion at the end of 2023 [6]. - Cash flow from operating activities was $611 million, compared to $523 million in the prior-year quarter [6]. - Long-term debt stood at $2.28 billion as of September 30, 2024, slightly up from $2.27 billion at the end of 2023 [7]. 2024 Outlook - The company expects net sales between $17.1 billion and $17.3 billion, with sales growth anticipated at 4-4.75% [8]. - EPS is projected to be in the range of $38.65-$39.35, adjusted from previous estimates [8]. Stock Performance - Over the past year, Grainger's shares have increased by 49.4%, significantly outperforming the industry growth of 19.3% [9].

Financial Data and Key Metrics Changes - Total company reported sales for Q3 2024 increased by 4.3% or 4% on a daily organic constant-currency basis, with operating margins remaining healthy at 15.6% and EPS rising by 4.7% to $9.87 [15][18] - Operating cash flow for the quarter was $611 million, allowing the company to return $328 million to shareholders through dividends and share repurchases [16] Business Line Data and Key Metrics Changes - High-Touch Solutions segment sales grew by 3.3% on a reported basis or 2.5% on a daily organic constant-currency basis, driven by solid volume growth and improved price contribution [19] - Endless Assortment segment sales increased by 8.1% or 11.5% on a daily constant-currency basis, with Zoro U.S. up 11.3% and MonotaRO achieving 15.4% growth in local constant currency [27][30] Market Data and Key Metrics Changes - The U.S. MRO market is estimated to have grown between 2% and 2.5% in the quarter, with price contributing nearly all of the market growth [23] - High-Touch Solutions U.S. business grew at 2.6% organically, resulting in a market outgrowth of approximately 50 basis points [24][26] Company Strategy and Development Direction - The company is focused on enhancing service capabilities and expanding its distribution center network, with construction beginning on a new distribution center in Houston [13] - Investments in demand generation activities, including marketing and seller headcount, are expected to create long-term advantages despite a sluggish macro environment [42][48] Management's Comments on Operating Environment and Future Outlook - Management noted that while the demand environment remains muted, the business continues to perform well, and they are confident in meeting their goals for the year [16][73] - The updated earnings guidance for 2024 includes daily organic constant-currency sales growth of between 4.5% and 5.25% and a diluted adjusted EPS range of $38.65 to $39.35 [31] Other Important Information - The company was recognized as the top-ranked company across all industries on the American Opportunity Index, highlighting its commitment to employee growth and development [36] Q&A Session Summary Question: What drove the acceleration in Endless Assortment growth this quarter? - Management attributed the growth to MonotaRO's success with enterprise customers and improvements with small businesses, along with strong B2B growth at Zoro [38][39] Question: How does the company balance investment spending in a sluggish macro environment? - Management believes that demand generation investments are crucial even in tough times, and they continue to drive productivity in core operations [42][43] Question: What are the thoughts on balance sheet options regarding stock buybacks or M&A? - The company plans to return excess cash to shareholders through share repurchases and does not envision changes to its capital allocation strategy [45] Question: What are the expectations for 2025 in terms of outgrowth? - Management expects 2025 to start similarly to the end of 2024, with continued investments in leveraging data assets for better customer solutions [50] Question: How is KeepStock performing and what are the implications of Amazon's new program? - KeepStock continues to grow faster than the overall business, and management feels confident in their ability to provide value despite Amazon's moves into higher-touch offerings [66][68]

Company Performance - W.W. Grainger reported quarterly earnings of $9.87 per share, missing the Zacks Consensus Estimate of $9.98 per share, but showing an increase from $9.43 per share a year ago, resulting in an earnings surprise of -1.10% [1] - The company posted revenues of $4.39 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.38%, and an increase from $4.21 billion year-over-year [2] - Over the last four quarters, W.W. Grainger has surpassed consensus EPS estimates three times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance - W.W. Grainger shares have increased approximately 32.7% since the beginning of the year, outperforming the S&P 500's gain of 21.9% [3] - The current consensus EPS estimate for the upcoming quarter is $9.43 on revenues of $4.25 billion, and for the current fiscal year, it is $38.69 on revenues of $17.2 billion [7] Industry Outlook - The Industrial Services industry, to which W.W. Grainger belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of W.W. Grainger's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

GRAINGER REPORTS RESULTS FOR THE THIRD QUARTER 2024 Continued strong execution fueling results; Company narrows 2024 earnings outlook Third Quarter Highlights • Delivered sales of $4.4 billion, up 4.3%, or 4.0% on a daily, organic constant currency basis • Achieved operating margin of 15.6%, down 30 basis points • Generated diluted EPS of $9.87, up 4.7% • Produced $611 million in operating cash flow and returned $328 million to Grainger shareholders through dividends and share repurchases • Narrowing 2024 t ...

Continued strong execution fueling results;Company narrows 2024 earnings outlookThird Quarter Highlights Delivered sales of $4.4 billion, up 4.3%, or 4.0% on a daily, organic constant currency basis Achieved operating margin of 15.6%, down 30 basis points Generated diluted EPS of $9.87, up 4.7% Produced $611 million in operating cash flow and returned $328 million to Grainger shareholders through dividends and share repurchases Narrowing 2024 total Company earnings guidance ranges, including daily, organic ...

For Immediate Release Chicago, IL – October 30, 2024 – Today, Zacks Equity Research like Siemens (SIEGY) , W.W. Grainger, Inc. (GWW) and SiteOne Landscape Supply, Inc. (SITE) . Industry: Industrial Services Link: https://www.zacks.com/commentary/2359697/3-industrial-services-stocks-to-consider-amid-industrychallenges The Zacks Industrial Services industry has been bearing the brunt of the prolonged contraction in the manufacturing sector as customers remain cautious about spending. Flared-up input costs hav ...

The Zacks Industrial Services industry has been bearing the brunt of the prolonged contraction in the manufacturing sector as customers remain cautious about spending. Flared-up input costs have added to the woes. Despite the current setback, the rise in e-commerce activities will be a key catalyst for the industry. Companies like Siemens (SIEGY) , W.W. Grainger, Inc. (GWW) and SiteOne Landscape Supply, Inc. (SITE) are positioned for growth by leveraging strategies to capitalize on this demand. The companie ...

W.W. Grainger (GWW) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 31, 2024, might help the stock move higher if these key numbers are better t ...

Core Viewpoint - W.W. Grainger reported a revenue of $4.31 billion for the quarter ended June 2024, reflecting a year-over-year increase of 3.1%, but fell short of the Zacks Consensus Estimate by 0.96% [1] Group 1: Financial Performance - The earnings per share (EPS) for the quarter was $9.76, compared to $9.28 a year ago, indicating a positive year-over-year change [1] - Total reported growth was 3.1%, which is below the average estimate of 3.9% based on five analysts [3] - Net Sales for High-Touch Solutions N.A. was $3.46 billion, slightly below the average estimate of $3.49 billion, with a year-over-year change of +3.1% [4] - Net Sales for Other was reported at $78 million, compared to the estimated $78.49 million, showing a +2.6% change year-over-year [5] - Net Sales for Endless Assortment reached $776 million, slightly above the estimated $775.89 million, with a +3.3% year-over-year change [6] Group 2: Operating Earnings - Operating earnings for High-Touch Solutions N.A. were $591 million, below the average estimate of $610.42 million [7] - Operating earnings for Endless Assortment were $61 million, exceeding the average estimate of $57.45 million [7] - Operating losses for Other were reported at -$3 million, better than the estimated -$3.82 million [7] Group 3: Stock Performance - Shares of W.W. Grainger have returned +6.7% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [8] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [8]