Studio City(US:MSC) Prnewswire·2024-06-13 20:30Core Insights - MSC Industrial Supply Co. reported preliminary fiscal Q3 2024 net sales of approximately $978-$980 million, reflecting a year-over-year decline of 7.3%-7.1%, impacted by a 300 basis point headwind from non-repeating Public Sector orders in the previous year [1][2] - Average daily sales increased by approximately 3% sequentially compared to the fiscal second quarter, which had one less selling day [1] - The company expects GAAP Earnings Per Share (EPS) to be in the range of $1.26 - $1.28 and adjusted EPS to be in the range of $1.32 - $1.34 [1][3] Financial Performance - The company is lowering its full-year 2024 outlook due to two main factors: ongoing softness in heavy manufacturing and a slower-than-expected ramp in Core Customer revenue growth [3] - Gross margins were approximately 60 basis points below expectations, attributed to increased product and customer mix headwinds and unexpected dilution from web price realignment [3] - The fiscal 2024 full-year financial outlook includes an expected average daily sales growth of -4.7% to -4.3%, adjusted operating margin of 10.5% to 10.7%, and depreciation and amortization expense of approximately $80 million [4] Strategic Actions - The company is focusing on areas of the business that are performing well, such as In Plant, Vending, and high-touch solutions, while also accelerating Core Customer growth initiatives [3] - Corrective actions are being taken regarding the web price realignment to improve gross margin trends [3] - MSC aims to achieve long-term goals of growing 400 basis points or more above the Industrial Production Index and achieving an adjusted operating margin in the mid-teens [3] Conference Call Information - A conference call is scheduled for June 14, 2024, at 8:30 AM EDT to discuss preliminary third-quarter results and updated outlook [5] - The final fiscal third quarter 2024 financial results will be released on July 2, 2024, at 8:30 AM EDT [1][5]