MSC Industrial Direct (US:MSM) ZACKSยท2025-04-07 16:25Core Viewpoint - MSC Industrial Direct Company, Inc. reported a decline in earnings and revenues for the second quarter of fiscal 2025, indicating challenges in the current market environment [1][4][5]. Financial Performance - The adjusted earnings per share (EPS) for the second quarter was 72 cents, surpassing the Zacks Consensus Estimate of 68 cents, but down 39% year over year [1][2]. - Total revenues for the quarter were approximately $892 million, a decrease of 4.7% from $935 million in the same quarter last year, and below the Zacks Consensus Estimate of $899 million [4]. - The cost of goods sold decreased by 3.7% year over year to $526 million, while gross profit fell by 3.7% to $365 million, resulting in a gross margin of 41%, slightly down from 41.5% in the prior year [5]. Operating Metrics - Operating expenses increased by 3.5% year over year to $301.6 million, leading to an adjusted operating income of $64 million, which is a decline of 34.9% from the previous year [5]. - The adjusted operating margin was reported at 7.1%, down from 10.5% in the prior year [5]. Cash and Debt Position - At the end of the fiscal second quarter, the company had cash and cash equivalents of $41.3 million, up from $30 million at the end of fiscal 2024 [6]. - The long-term debt increased to $305 million from $279 million at the end of fiscal 2024 [6]. Future Guidance - For the third quarter of fiscal 2025, the company expects average daily sales to decline by 2% or remain flat compared to the same quarter last year, with an adjusted operating margin projected between 8.7% and 9.3% [7]. Stock Performance - Over the past year, the company's shares have decreased by 22.2%, compared to a 19.1% decline in the industry [8].