Grainger(US:GWW) ZACKS·2024-08-01 17:11Core 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]