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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].