Breaking News
FONT-SIZE Plus   Neg
Share SHARE

MSC Industrial Sees Q3 Results Above Estimates After Higher Q2 Profit

Wholesale equipment marketer MSC Industrial Direct Co., Inc. (MSM: Quote) on Wednesday projected third-quarter earnings and sales above Wall Street estimates after reporting a 21 percent climb in second-quarter profit. Quarterly earnings per share matched the view, while top line beat estimates.

Erik Gershwind, President and Chief Operating Officer, stated, "Our strong top and bottom-line performance in the second quarter was driven by the success of our growth initiatives, including the growth of our highly customized vending program and recent acquisitions."

For its second quarter, the distributor of Metalworking and Maintenance, Repair and Operations or MRO supplies said its net income climbed to $60.07 million from last year's $49.69 million. Earnings per share grew 21.8 percent to $0.95 from $0.78 a year ago, reflecting slightly lower share count.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share. Analysts' estimates typically exclude special items.

Net sales rose 16.5 percent to $562.97 million from $483.36 million last year, while analysts were looking for revenues of $554.69 million.

Operating income increased 19.8 percent and operating margin was up to 17.1 percent from 16.7 percent a year earlier.

David Sandler, Chief Executive Officer, said, "I am extremely pleased with the progress of our growth initiatives and our performance in the quarter. With each passing quarter, it becomes increasingly clear that the industry consolidation we foresaw almost four years ago is entering the next phase."

Based on current market conditions, MSC expects third-quarter earnings per share between $1.08 and $1.12 and net sales between $610 million and $622 million. Analysts expect the company to earn $1.08 per share, on revenues of $594.43 million.

According to the company, the positive forecast primarily reflects continued growth in its core business, expected cyclical increases in product costs, dilution from recent acquisition and planned increases in investment spending.

MSC shares are currently trading at $84.30 in pre-market activity, up $0.03 or 0.04 percent.

Register
To receive FREE breaking news email alerts for MSC Industrial Direct and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving mostly higher over the course of the previous week, stocks showed a notable move back to the downside during trading on Monday. With the drop on the day, the Dow pulled back well off last Friday's record closing high. After reporting four consecutive monthly increases, the National Association of Realtors released a report on Monday showing an unexpected drop in U.S. existing home sales in the month of August. NAR said existing home sales fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August. The European Central Bank remains ready to use additional unconventional tools to counter risks to the inflation outlook and to boost the euro area economy, ECB President Mario Draghi said on Monday. "The Governing Council remains fully determined to counter risks to the medium-term outlook for inflation," Draghi said in Brussels.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.