MSC Industrial (MSM) Lowers '24 View Post Preliminary Q3 Results

Core Insights - MSC Industrial Direct Company, Inc. announced preliminary financial results for Q3 fiscal 2024 and updated its fiscal 2024 outlook [1] Financial Performance - Adjusted earnings per share for Q3 are expected to be between $1.32 and $1.34, a decline from $1.74 reported in the same quarter last year [2] - Net sales for Q3 are projected to be between $978 million and $980 million, indicating a year-over-year decline of 7.3% to 7.1% [7] - Average daily sales are expected to decline by 4.7% to 4.3% year-over-year for the full fiscal year, revised from a previous outlook of flat to 5% growth [3] Margin and Expenses - The adjusted operating margin is expected to be between 10.5% and 10.7%, down from the prior estimate of 12% to 12.8% [13] - Gross margin in the quarter is approximately 60 basis points lower than projections due to unfavorable product and customer mix, as well as negative impacts from a web pricing realignment initiative [8] - Interest and other expenses are now expected to be $45 million for fiscal 2024, updated from a previous range of $40 million to $50 million [9] Stock Performance - MSC Industrial's shares have decreased by 9.2% over the past year, compared to an industry decline of 8.8% [14] - The company currently holds a Zacks Rank of 4 (Sell) [15]