Financial Performance - Net sales for Q3 FY25 were $971.1 million, a decrease of 0.8% year-over-year[2]. - Operating income was $82.7 million, down 22.5% from the previous year, with an adjusted operating income of $87.2 million[2][3]. - Operating margin decreased to 8.5%, compared to 10.9% in Q3 FY24, with an adjusted operating margin of 9.0%[2][3]. - Net income attributable to MSC was $56.8 million, a decline of 20.7% year-over-year, with adjusted net income of $60.2 million[2][3]. - Diluted EPS was $1.02, down from $1.27 in the prior fiscal year quarter, with adjusted diluted EPS of $1.08[2][3]. - Average daily sales declined by 0.8% year-over-year, slightly ahead of the midpoint of the company's outlook[4]. - Net sales for the thirteen weeks ended May 31, 2025, were $971.145 million, a decrease of 0.2% compared to $979.350 million for the same period in 2024[15]. - Gross profit for the same period was $397.739 million, resulting in a gross margin of 41.0%[25]. - Net income attributable to MSC Industrial for the thirteen weeks ended May 31, 2025, was $56.845 million, down 20.8% from $71.705 million in the prior year[15]. - The diluted net income per common share was $1.02, compared to $1.27 for the same period last year, reflecting a decrease of 19.7%[25]. - Net sales for the thirty-nine weeks ended May 31, 2025, were $2,791,346, with a gross profit of $1,141,156, resulting in a gross margin of 40.9%[26]. - Net income attributable to MSC Industrial for the thirty-nine weeks ended May 31, 2025, was $142,782, with diluted earnings per share of $2.55[26]. - The net income for the thirteen weeks ended June 1, 2024, was $71,705, with diluted earnings per share of $1.27[28]. Operating Expenses - Operating expenses increased to $312.324 million from $288.991 million, representing a rise of 8.1% year-over-year[15]. - The operating expenses for the thirty-nine weeks ended June 1, 2024, were $870,859, representing 30.4% of net sales[30]. - The company incurred restructuring and other costs of $2.680 million during the quarter[25]. - The company incurred restructuring and other costs of $11,787 for the thirty-nine weeks ended June 1, 2024[30]. Cash Flow and Shareholder Returns - Approximately $56 million was returned to shareholders through dividends and share repurchases during the fiscal third quarter[2]. - Cash flows from operating activities for the thirty-nine weeks ended May 31, 2025, were $253.461 million, down from $303.433 million in the previous year[19]. - Cash and cash equivalents at the end of the period were $71.692 million, an increase from $25.928 million at the end of the previous year[19]. - Free cash flow conversion is projected to be approximately 120%[10]. Future Outlook - The company aims to restore performance consistent with long-term objectives of growing to 400 basis points or more above the IP Index and expanding operating margins to the mid-teens[2]. - Full-year fiscal 2025 outlook for certain financial metrics has been maintained, with adjusted operating margin guidance of 8.5% to 9.0%[5][6].

Core Insights - MSC Industrial Supply Co. reported a net sales of $971.1 million for Q3 FY25, a decrease of 0.8% compared to $979.4 million in Q3 FY24 [2][7] - The company experienced a significant decline in income from operations, which fell by 22.5% to $82.7 million from $106.8 million year-over-year [2][7] - Diluted earnings per share (EPS) decreased to $1.02 from $1.27, reflecting a 19.7% decline [2][7] Financial Performance - Net sales for the year-to-date (YTD) period were $2,791.3 million, down 2.7% from $2,868.7 million in the previous year [2] - Adjusted income from operations for Q3 FY25 was $87.2 million, a decrease of 21.8% from $111.5 million in Q3 FY24 [2][7] - The adjusted operating margin for Q3 FY25 was 9.0%, down from 11.4% in Q3 FY24 [2][7] Shareholder Returns - The company returned approximately $56 million to shareholders through dividends and share repurchases during the fiscal third quarter, totaling about $181 million returned YTD [4] - The strong free cash flow performance allowed the company to maintain shareholder returns despite declining sales [4] Strategic Focus - The CEO highlighted early signs of progress in three strategic areas: reenergizing core customers, maintaining momentum in high-touch solutions, and optimizing cost to serve [4] - The company aims to restore performance consistent with long-term objectives, targeting growth of 400 basis points or more above the Industrial Production (IP) Index and expanding operating margins to the mid-teens [4] Outlook - The company provided a fourth-quarter fiscal 2025 outlook, projecting average daily sales growth between -0.5% and 1.5% year-over-year [5] - The adjusted operating margin is expected to be between 8.5% and 9.0% for the upcoming quarter [5]

Company Overview - MSC Industrial Direct Co., Inc. is set to release its third-quarter earnings results on July 1, with analysts expecting earnings of $1.03 per share, a decrease from $1.33 per share in the same period last year [1] - The company is projected to report quarterly revenue of $969.19 million, down from $979.35 million a year earlier [1] Financial Performance - In the second quarter, MSC Industrial reported a net sales decline of 4.7% year-over-year, totaling $891.7 million, which was below the consensus estimate of $899.54 million [2] - The company offers an annual dividend yield of 3.98%, translating to a quarterly dividend of $3.40 per share [2] Investment Insights - To achieve a monthly income of $500 from dividends, an investment of approximately $150,872 or around 1,765 shares is required, while a more modest goal of $100 per month would need an investment of $30,174 or about 353 shares [3] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4][5] Stock Performance - Shares of MSC Industrial Direct increased by 0.8%, closing at $85.48 on the last trading day [5]

Earnings Report - MSC Industrial Direct Co., Inc. is set to release its third-quarter earnings results on July 1, with expected earnings of $1.03 per share, a decrease from $1.33 per share in the same period last year [1] - The company projects quarterly revenue of $969.19 million, down from $979.35 million a year earlier [1] Recent Performance - In the second quarter, net sales declined by 4.7% year-over-year to $891.7 million, missing the consensus estimate of $899.54 million [2] - Following the earnings report, MSC Industrial Direct shares increased by 3.5%, closing at $84.77 [2] Analyst Ratings - Loop Capital analyst Chris Dankert maintained a Hold rating and reduced the price target from $83 to $74 [4] - Baird analyst David Manthey kept a Neutral rating and lowered the price target from $90 to $84 [4] - Stephens & Co. analyst Tommy Moll downgraded the stock from Overweight to Equal-Weight with a price target of $85 [4] - Keybanc analyst Ken Newman downgraded the stock from Overweight to Sector Weight [4]

Core Viewpoint - Analysts project MSC Industrial (MSM) will report quarterly earnings of $1.03 per share, reflecting a year-over-year decline of 22.6%, with revenues expected to reach $970.15 million, down 0.9% from the same quarter last year [1] Earnings Estimates - Over the past 30 days, there has been a 1.1% upward revision in the consensus EPS estimate for the quarter, indicating a collective reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics - Analysts estimate 'Sales Days' to be 64, unchanged from the previous year [4] - The 'Average Daily Sales (ADS)' is expected to be $15.12 million, down from $15.30 million reported in the same quarter last year [5] - 'Days Sales Outstanding' is projected to reach 40, compared to 39 in the same quarter last year [5] Market Performance - MSC Industrial shares have returned -1.3% over the past month, contrasting with the Zacks S&P 500 composite's +5.1% change, but the company holds a Zacks Rank 2 (Buy), suggesting it may outperform the market in the near future [6]

Group 1 - MSC Industrial Direct (NYSE: MSM) is showing potential for recovery as it approaches Q3 earnings, despite facing a 4.7% year-over-year revenue decline in Q2 2025 [1] - The macroeconomic environment is improving, which may positively impact the company's performance moving forward [1] - The analyst has a medium-term investment strategy focused on identifying catalysts that can unlock value and drive upside [1] Group 2 - The analyst has extensive experience in the investment sector, particularly in industrial, consumer, and technology sectors, which informs their investment convictions [1] - There is a possibility of initiating a long position in MSM within the next 72 hours, indicating a positive outlook on the stock [2]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for MSC Industrial due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - MSC Industrial is expected to report quarterly earnings of $1.03 per share, reflecting a year-over-year decrease of 22.6%, with revenues projected at $970.15 million, down 0.9% from the previous year [3]. - The consensus EPS estimate has been revised 1.08% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP of +1.94% indicates a likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 [12]. - Historical performance shows that MSC Industrial has beaten consensus EPS estimates in two out of the last four quarters, with a recent surprise of +5.88% [13][14]. Market Reaction - The upcoming earnings report on July 1 could lead to stock price increases if results exceed expectations, while missing estimates may result in a decline [2]. - The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call [2].

Core Insights - MSC Industrial Supply Co. has been recognized as a Great Place to Work for the second consecutive year in the U.S. and for the first time in Canada, Mexico, and the United Kingdom [1][3] - 75% of associates at MSC reported that it is a great place to work, which is 18 percentage points higher than the average U.S. company [1] - 88% of associates felt welcomed upon joining the company [1] Company Overview - MSC Industrial Supply Co. is a leading distributor of metalworking and maintenance, repair, and operations (MRO) products in North America, offering approximately 2.4 million products and services [5] - The company has over 7,000 associates and has been in operation for more than 80 years, focusing on enhancing productivity and profitability for its customers [5] Certification Details - The Great Place to Work Certification is based on employee feedback regarding workplace experience, specifically measuring trust across five dimensions: credibility, respect, fairness, pride, and sense of belonging [2][6] - More than 10,000 companies globally apply for the Great Place to Work Certification each year, making it a recognized benchmark for outstanding employee experience [6][7]

Company Overview - MSC Industrial Supply Co. is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services [3] - The company offers approximately 2.4 million products and provides inventory management and supply chain solutions [3] - With over 80 years of experience, MSC has a dedicated team of more than 7,000 associates focused on enhancing customer productivity and profitability [3] Upcoming Conference Call - The company will hold a conference call to review its fiscal year 2025 third quarter results on July 1, 2025, at 8:30 a.m. Eastern Time [1] - The call will be broadcast online, and an archive will be available within one hour after the call concludes, remaining accessible until July 15, 2025 [2] Access Information - Investors can access the earnings release, webcast, presentation slides, and operational statistics on the company's website [2] - The conference call can be accessed via specific phone numbers for U.S., Canada, and international callers [2]

Core Insights - MSC Industrial (MSM) has consistently beaten earnings estimates, particularly in the last two quarters, with an average surprise of 11.85% [1][2] - The company reported earnings of $0.72 per share for the most recent quarter, exceeding the expected $0.68, resulting in a surprise of 5.88% [2] - In the previous quarter, MSC Industrial reported $0.86 per share against an expectation of $0.73, achieving a surprise of 17.81% [2] Earnings Estimates and Predictions - Earnings estimates for MSC Industrial have been trending higher, influenced by its history of earnings surprises [5] - The stock has a positive Zacks Earnings ESP of +1.94%, indicating bullish sentiment among analysts regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat [8] Statistical Insights - 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 [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [8]