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JPMorgan Lowers W.W. Grainger (GWW) PT to $1,035 Amidst Mixed Q2 Results, Gross Margin Pressure.
Yahoo Financeยท 2025-09-14 05:02
Core Viewpoint - W.W. Grainger Inc. is experiencing mixed financial results, with a notable sales increase but declining operating margins, prompting a price target reduction by JPMorgan. Financial Performance - In Q2 2025, W.W. Grainger Inc. reported total sales of approximately $4.6 billion, reflecting a year-over-year increase of 5.6% [1] - The diluted EPS for the quarter was $9.97, which is an increase of $0.21 or 2.2% from the previous year [2] - The company's operating margin declined by 0.5% to 14.9% due to pressures on gross margins [2] Segment Performance - The Endless Assortment segment, which includes Zoro US and MonotaRO, was a significant growth driver, with sales increasing by 19.7% [4] - In contrast, the High-Touch Solutions segment saw more modest growth, with sales up only 2.5% [4] Outlook - W.W. Grainger Inc. has adjusted its 2025 EPS outlook downward, now projecting a range between $38.50 and $40.25, which represents roughly a 1% increase at the midpoint compared to the previous year [4] - JPMorgan has lowered the price target for W.W. Grainger Inc. to $1,035 from $1,125 while maintaining a Neutral rating [1][3]
10 Stocks to Invest in Before They Split Next
Insider Monkeyยท 2025-09-13 14:24
Group 1: Stock Split Overview - A stock split is an action where a company splits its existing shares into multiple new shares, making the stock more accessible to investors [1] - A forward stock split lowers the price per share, with examples such as a 2-for-1 split or a 10-for-1 split, which do not alter the company's market capitalization or total value of holdings [1] - While a stock split may lead to short-term increases in trading volume and positive investor sentiment, it does not guarantee long-term performance improvements [1] Group 2: Market Insights from Bob Keiser - Bob Keiser, co-chief investment officer at Aspire Strategist Portfolios, has been bullish on large-cap core and growth stocks for two years, citing them as primary drivers of earnings growth [2] - Keiser believes that a predicted Fed interest rate cut will not significantly alter the macro trend of growth in these sectors, although it will be a positive factor [2] - The top 10 stocks in the index account for approximately 40% of its market capitalization, driven by the tech and growth sector expected to post four consecutive quarters of double-digit earnings growth [3] Group 3: Earnings Growth Projections - Consensus expectations forecast a third consecutive year of double-digit earnings growth in 2026, with S&P 500 earnings projected to reach $300 per share [3] - The anticipated broadening of earnings growth beyond the tech sector includes contributions from industrials, materials, and financials, which is necessary for achieving the $300 per share target [3] Group 4: Stock Recommendations - A list of stocks trading over $400 that could potentially split was compiled, focusing on those with significant price surges and a history of stock splits [6] - The methodology emphasizes stocks popular among elite hedge funds, with a strategy that has outperformed the market significantly since May 2014 [7] Group 5: Company-Specific Highlights - Parker-Hannifin Corporation (NYSE:PH) reported total revenue of $19.9 billion for FY2025, with a record adjusted segment operating margin of 26.1% and a backlog of $11 billion [10][11] - W.W. Grainger Inc. (NYSE:GWW) achieved total sales of approximately $4.6 billion in Q2 2025, marking a 5.6% year-over-year increase, despite a decline in operating margin to 14.9% [13][14]
BUTLER NATIONAL CORPORATION REPURCHASES 2.41 MILLION SHARES
Prnewswireยท 2025-08-13 16:45
Core Viewpoint - Butler National Corporation has initiated a new stock repurchase program of $5 million, closing its previous 2016 program, reflecting the company's commitment to enhancing shareholder value and confidence in long-term growth prospects [2][3]. Group 1: Stock Repurchase Details - The company has repurchased 2.41 million shares of its common stock since April 30, 2025, at an average price of $1.51 per share [1]. - The new stock repurchase program is authorized through April 2027 and allows for the repurchase of approximately 4.8% of the 64,854,736 outstanding shares at current market prices [2]. - As of July 31, 2025, the company has paid $2.9 million for the repurchased shares, with remaining payment obligations of $0.9 million due before December 31, 2025 [4]. Group 2: Management and Strategic Intent - The Board of Directors has prioritized stock repurchases, with management actively seeking opportunities to repurchase shares through private transactions [3]. - The new stock repurchase program is indicative of the Board's commitment to enhancing shareholder value and reflects confidence in the company's long-term growth prospects [3]. Group 3: Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [6]. - The Aerospace Products segment includes design, manufacture, and service of structural modifications and electronic systems for various aircraft, while the Professional Services segment manages a gaming facility in Dodge City, Kansas [6].
Grainger Stock Gears Up to Report Q2 Earnings: What to Expect?
ZACKSยท 2025-07-29 17:21
Core Insights - W.W. Grainger, Inc. (GWW) is set to report its second-quarter 2025 results on August 1, with sales expected to reach $4.52 billion, reflecting a 4.8% year-over-year growth, and earnings per share (EPS) estimated at $10.00, indicating a 2.5% increase from the previous year [2][5] Financial Performance - The consensus estimate for GWW's sales is $4.52 billion, which represents a 4.8% growth compared to the same quarter last year [2][5] - The earnings estimate of $10.00 per share shows a 2.5% year-over-year increase, with a slight upward revision of 0.1% in the past 60 days [2][5] - GWW's earnings surprise history indicates that the company has beaten the Zacks Consensus Estimates in two of the last four quarters, with an average surprise of 1.2% [3][4] Segment Performance - High-Touch sales are projected to rise by 2.2% to $3.53 billion, driven by strength in commercial, transportation, and heavy manufacturing sectors [5][9] - The Endless Assortment segment is expected to see an 11% increase in sales to $862 million, attributed to robust customer acquisition and repeat business [5][10] Growth Drivers - GWW's growth is anticipated to be supported by digital investments, supply-chain improvements, and overall sales momentum, with organic daily sales growth expected at 3.8% [5][7] - The High-Touch Solutions North America segment is benefiting from an expanding customer base and strong revenue growth across North America [8][9] Cost Considerations - The company has been facing elevated material and freight costs, along with higher operating expenses and increased selling, general, and administrative (SG&A) costs due to technology investments, which may negatively impact margins [11] Stock Performance - GWW's stock has increased by 9.4% over the past year, compared to a 13.7% rise in the industry [12]
ZKH Group Limited Announces First Quarter 2025 Unaudited Financial Results
Prnewswireยท 2025-05-20 10:00
Core Insights - ZKH Group Limited reported a 4.0% increase in net revenues for Q1 2025, reaching RMB1,935.4 million (US$266.7 million) compared to RMB1,860.4 million in Q1 2024, driven primarily by growth in product sales [5][12] - The company experienced a decrease in Gross Merchandise Volume (GMV) by 7.5% to RMB2,171.997 million, with the ZKH platform GMV declining by 8.0% [2][5] - ZKH's international expansion, particularly in the U.S., has shown significant momentum, with revenue and customer base nearly doubling each month since January 2025 [2][5] Financial Performance - Net product revenues increased by 6.2% to RMB1,884.9 million (US$259.7 million), while net service revenues decreased by 43.1% to RMB37.9 million (US$5.2 million) [9][12] - Gross profit was RMB332.1 million (US$45.8 million), a slight decrease of 0.6% from RMB334.1 million in Q1 2024, resulting in a gross margin of 17.2% [7][12] - Operating loss narrowed to RMB80.8 million (US$11.1 million) from RMB129.6 million in the same period last year, with an operating loss margin of 4.2% [11][12] Customer Growth and Market Dynamics - The number of customers increased by 30.3% year-over-year to 60,102, with notable growth in the GBB platform customer base, which rose by 73.0% [2][5] - The marketplace model's contribution to GMV decreased significantly from 24.4% in Q1 2024 to 12.5% in Q1 2025, reflecting a strategic shift towards higher-margin product sales [3][10] Cost Management and Operational Efficiency - Operating expenses decreased by 10.9% to RMB412.9 million (US$56.9 million), with all categories of operating expenses showing reductions [10][12] - Fulfillment expenses decreased by 4.2% to RMB93.3 million (US$12.9 million), while sales and marketing expenses fell by 16.6% to RMB136.8 million (US$18.9 million) [15][12] Future Outlook - The company aims to enhance its product offerings and supply chain capabilities internationally while leveraging digitalization and big data analytics to meet evolving customer needs [2][5] - ZKH Group Limited remains committed to investing in its products, supply chain, AI capabilities, and global footprint to drive sustainable growth and reinforce its industry leadership [2][5]
Grainger(GWW) - 2025 Q1 - Earnings Call Presentation
2025-05-01 12:08
Q1 2025 Financial Performance - Sales increased by 1.7% to $4.306 billion, with a 3.3% increase on a daily basis[23] - Diluted EPS increased by 2.5% to $9.86[23] - Gross profit margin increased by 30 bps to 39.7%[23] - Operating margin decreased by 20 bps to 15.6%[23] Segment Performance - High-Touch Solutions N A sales decreased by 0.2% to $3.397 billion, but increased 1.3% on a daily basis[28] - Endless Assortment sales increased by 10.3% to $828 million, with a 15.3% increase on a daily, constant currency basis[36] - Zoro's daily sales grew by 18.4%[36] Full Year 2025 Guidance - The company reaffirmed its full-year sales guidance of $17.6 billion to $18.1 billion, representing a 2.7% to 5.2% increase[51] - The company expects daily, constant currency sales growth of 4.0% to 6.5%[51] - The company expects diluted EPS of $39.00 to $41.50, representing flat to 6.5% growth[51]
Grainger Stock Gears Up to Report Q1 Earnings: Here's What to Expect
ZACKSยท 2025-04-29 17:20
Core Viewpoint - W.W. Grainger, Inc. (GWW) is set to report its first-quarter 2025 results on May 1, with sales expected to reach $4.33 billion, reflecting a 2.4% increase year-over-year, while earnings per share are estimated at $9.46, indicating a 1.7% decline from the previous year [1]. Financial Performance Expectations - The Zacks Consensus Estimate for GWW's sales is $4.33 billion, showing a growth of 2.4% compared to the previous year [1]. - The consensus estimate for earnings is $9.46 per share, which represents a year-over-year decrease of 1.7% [1]. - GWW's earnings estimate has decreased by 0.2% over the past 60 days [1]. Earnings Surprise History - Grainger has a mixed earnings surprise history, beating estimates in two of the last four quarters, with an average surprise of 0.2% [3]. Earnings Prediction Model - The current Earnings ESP for GWW is -0.08%, indicating that the model does not predict an earnings beat this time [4]. - GWW holds a Zacks Rank of 3, suggesting a hold position [5]. Factors Influencing Q1 Performance - GWW has experienced strong growth in core product sales, driven by investments in e-commerce and digital capabilities, as well as supply chain improvements [6]. - Organic daily sales growth is expected to be 2.7% [6]. Segment Performance Insights - The High-Touch Solutions North America segment is projected to see organic daily sales growth of 1.7%, benefiting from strength in commercial and heavy manufacturing sectors [7]. - Sales for the High-Touch Solutions segment are expected to reach $3.45 billion, up 1.3% from the previous year [8]. - The Endless Assortment segment is anticipated to grow by 6.7% in organic daily sales, with projected sales of $793 million, reflecting a 6.3% increase year-over-year [9]. Cost Challenges - GWW has faced elevated material and freight costs, along with increased operating and SG&A costs due to higher technology investments, which may negatively impact margins [10]. Stock Performance - Grainger's stock has increased by 9.1% over the past year, contrasting with an 11.1% decline in the industry [11].