Financial Data and Key Metrics Changes - Average daily sales (ADS) for the fiscal third quarter declined 0.8% year over year but improved 7% quarter over quarter, exceeding historical sequential averages [8][24] - Gross margins were reported at 41%, improving 10 basis points year over year, while adjusted operating margins were at 9%, down 240 basis points compared to the prior year [9][29] - Reported operating margin for the quarter was 8.5%, compared to 10.9% in the prior year quarter [29] Business Line Data and Key Metrics Changes - Core customer daily sales were down 0.8% year over year, while public sector sales improved 2.4% year over year [10][25] - The installed base of vending machines increased to over 28,700, with average daily sales through vending up approximately 8% year over year [26] - Sales to customers with an implant program grew 10% year over year, also representing approximately 19% of total company net sales [26] Market Data and Key Metrics Changes - Conditions in primary end markets remain subdued, particularly in automotive and fabricated metals, while aerospace continues to show growth [14] - The manufacturing business sentiment has fluctuated, with readings returning to negative numbers in April and May, reflecting customer caution around tariffs [15] Company Strategy and Development Direction - The company is focused on three critical areas: reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing cost to serve [7] - The company is implementing a sales optimization initiative and productivity efforts to lower costs, alongside a tariff management plan [6][20] - The company aims to deliver $10 million to $15 million in annualized savings by fiscal year 2026 through network optimization initiatives [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future production levels, despite current macroeconomic uncertainties [15] - The company remains committed to its strategic initiatives and is confident in the opportunities ahead, despite the subdued manufacturing environment [15][16] Other Important Information - The company repurchased approximately 117,000 shares during the quarter, returning approximately $56 million to shareholders [30] - Free cash flow conversion is expected to be approximately 120% for the full year, an increase from prior expectations of 100% [32] Q&A Session Summary Question: Price outlook for Q4 and next year - Management indicated that recent price increases would likely contribute low single digits to revenue, with ongoing inflationary pressures from suppliers [41][42] Question: Q4 margin outlook - Management expects operating margins to be flat to down 50 basis points quarter over quarter, with better gross margin performance anticipated [46][48] Question: Supplier price increases - Discussions with suppliers are ongoing and fluid, with general inflationary pressures being observed across the supply chain [55] Question: Core account growth potential - Management is encouraged by progress in core accounts and aims for growth consistent with company averages, focusing on marketing and web pricing [75][76] Question: Website metrics and marketing effectiveness - The company has seen consistent improvements in website traffic and conversion rates, driven by a combination of digital and personal outreach marketing efforts [90][91] Question: Digital Core initiative - The Digital Core initiative is being reactivated to enhance core order-to-cash systems, aimed at unlocking productivity [97] Question: Trends through June - Sales trends in June were reported as fairly consistent throughout the month [98]

Financial Data and Key Metrics Changes - Fiscal third quarter sales were $971 million, a decline of 0.8% year over year, with lower volumes offset by price benefits of 80 basis points and acquisitions contributing 60 basis points [21][22] - Average daily sales improved 7% quarter over quarter, exceeding historical sequential averages [21][22] - Reported operating margin for the quarter was 8.5%, down from 10.9% in the prior year, while adjusted operating margin was 9%, declining 240 basis points year over year [26][29] Business Line Data and Key Metrics Changes - Core customer daily sales declined 0.8% year over year, while public sector sales improved 2.4% [22][24] - Average daily sales through vending increased approximately 8% year over year, representing about 19% of total company net sales [24] - Sales to customers with an implant program grew 10% year over year, also representing approximately 19% of total company net sales [24] Market Data and Key Metrics Changes - Conditions in primary end markets remain subdued, particularly in automotive and fabricated metals, while aerospace shows continued growth [12][13] - Customer sentiment readings returned to negative numbers in April and May, reflecting caution around tariffs and general uncertainty [12][13] Company Strategy and Development Direction - The company is focused on three critical areas: reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing cost to serve [6][8] - The company is implementing a sales optimization initiative and productivity efforts to lower costs [5][15] - The company aims to deliver $10 million to $15 million in annualized savings by fiscal year 2026 through network optimization initiatives [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the opportunity ahead despite macroeconomic challenges, noting an improvement in performance against the overall IP index [13] - The outlook for the fiscal fourth quarter anticipates average daily sales to be down 0.5% to up 1.5% compared to the prior year, reflecting cautious demand as tariff deadlines approach [28][29] Other Important Information - The company added a new Senior Vice President and Chief Information Officer to enhance its technology leadership team [10] - Free cash flow conversion for the fiscal third quarter was approximately 134% [27] Q&A Session Summary Question: Price outlook for Q4 and next year - Management indicated that recent price increases would likely lead to a low single-digit increase in pricing, with ongoing inflationary pressures from suppliers [36][37] Question: Fourth quarter margin outlook - Management noted expectations for a flat to down 50 basis points sequential decline in operating margins, driven by better gross margin performance [42][44] Question: Supplier price increases - Discussions with suppliers are ongoing and fluid, with general inflationary pressures being observed [52][54] Question: Average daily sales trends - Management attributed recent sales improvements to macro factors and ongoing initiatives, with pricing not being a major variable in recent months [68][70] Question: Core accounts marketing efforts - Marketing efforts are in full swing, with a focus on enhancing customer experience and increasing traffic to the website [71][72] Question: Trends through June - Sales trends in June were described as fairly consistent throughout the month [93]

分组1 - MSC Industrial reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, but down from $1.33 per share a year ago, representing an earnings surprise of +4.85% [1] - The company posted revenues of $971.15 million for the quarter, surpassing the Zacks Consensus Estimate by 0.10%, but down from $979.35 million year-over-year [2] - MSC Industrial has outperformed the S&P 500 with a share price increase of about 13.8% since the beginning of the year, compared to the S&P 500's gain of 5.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $946.5 million, and for the current fiscal year, it is $3.55 on revenues of $3.74 billion [7] - The Industrial Services industry, to which MSC Industrial belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8]

Financial Performance - Average daily sales decreased by 0.8% year-over-year, but showed a 7% quarter-over-quarter improvement, exceeding historical sequential averages[6, 36] - Gross margin increased by 10 bps year-over-year to 41.0%, primarily due to favorable price/cost dynamics[6, 36] - Reported and adjusted operating margins both decreased by 240 bps year-over-year, mainly due to lower revenues and higher operating expenses[6, 36] - The company generated $182 million in free cash flow year-to-date, representing 129% of net income[6, 36] - Net sales were $971.1 million in Q3 2025, compared to $979.4 million in Q3 2024[17] - Reported earnings per diluted share were $1.02 in Q3 2025, compared to $1.27 in Q3 2024[23] Sales & Customer - Core and Other Customer average daily sales showed improving year-over-year trends, with 8% quarter-over-quarter growth[6, 36] - Customers with an In-Plant program sales increased by 10%, representing 19% of sales[24] - Sales through vending machines increased by 8%, representing 19% of sales[24] Capital Allocation - Approximately 117 thousand shares were repurchased in Q3 2025[6] - Approximately $181 million was returned to shareholders year-to-date through dividends and share repurchases[6] Outlook - The company anticipates average daily sales to increase between -0.5% to 1.5% year-over-year in Q4 2025[35] - Adjusted operating margin is expected to be between 8.5% and 9.0% in Q4 2025[35]

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]