ZACKSยท2025-07-02 16:05Core Insights - MSC Industrial Direct Company, Inc. (MSM) reported adjusted earnings per share (EPS) of $1.08 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.03, but reflecting an 18.8% decline year over year [1][7] - The company generated revenues of approximately $971 million, a decrease of 0.8% from $979 million in the same quarter last year, while also surpassing the Zacks Consensus Estimate of $970 million [2][7] - The gross margin improved to 41% compared to 40.9% in the prior year, despite a 0.7% decline in gross profit to $398 million [3][7] Financial Performance - The cost of goods sold decreased by 1% year over year to $573 million, while operating expenses rose by 8% to $312 million [3] - Adjusted operating income fell 21.8% to $87 million, resulting in an adjusted operating margin of 9%, down from 11.4% in the previous year [3][7] - Cash and cash equivalents increased to $71.7 million from $29.6 million at the end of fiscal 2024, while long-term debt rose to approximately $285 million from $279 million [4] Future Guidance - For Q4 fiscal 2025, the company anticipates average daily sales to decline by 0.5% or increase by 1.5% compared to the previous year [5] - The adjusted operating margin is expected to be between 8.5% and 9% for the upcoming quarter [5] Stock Performance - Over the past year, MSC Industrial's shares have increased by 20%, outperforming the industry growth of 15.8% [6]