Latest news with #GWW
Yahoo
02-08-2025
- Business
- Yahoo
Compared to Estimates, W.W. Grainger (GWW) Q2 Earnings: A Look at Key Metrics
W.W. Grainger (GWW) reported $4.55 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 5.6%. EPS of $9.97 for the same period compares to $9.76 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.52 billion, representing a surprise of +0.78%. The company delivered an EPS surprise of -0.3%, with the consensus EPS estimate being $10.00. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how W.W. Grainger performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Reported Growth: 5.1% versus the five-analyst average estimate of 4.8%. Net Sales- High-Touch Solutions N.A.: $3.54 billion compared to the $3.55 billion average estimate based on seven analysts. The reported number represents a change of +2.5% year over year. Net Sales- Endless Assortment: $929 million versus the seven-analyst average estimate of $887.37 million. The reported number represents a year-over-year change of +19.7%. Net Sales- Other: $81 million compared to the $81.42 million average estimate based on six analysts. The reported number represents a change of +3.9% year over year. Operating earnings (losses)- High-Touch Solutions N.A.: $589 million compared to the $609.17 million average estimate based on six analysts. Operating earnings (losses)- Endless Assortment: $92 million compared to the $76.73 million average estimate based on six analysts. Operating earnings (losses)- Other: $-3 million versus the three-analyst average estimate of $-1.05 million. View all Key Company Metrics for W.W. Grainger here>>> Shares of W.W. Grainger have returned -1% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-08-2025
- Business
- Yahoo
W.W. Grainger's (NYSE:GWW) Q2: Beats On Revenue But Stock Drops 11.2%
Maintenance and repair supplier W.W. Grainger (NYSE:GWW) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 5.6% year on year to $4.55 billion. On the other hand, the company's full-year revenue guidance of $17.85 billion at the midpoint came in 0.5% below analysts' estimates. Its GAAP profit of $9.97 per share was 0.9% below analysts' consensus estimates. Is now the time to buy W.W. Grainger? Find out in our full research report. W.W. Grainger (GWW) Q2 CY2025 Highlights: Revenue: $4.55 billion vs analyst estimates of $4.53 billion (5.6% year-on-year growth, 0.6% beat) EPS (GAAP): $9.97 vs analyst expectations of $10.06 (0.9% miss) Adjusted EBITDA: $765 million vs analyst estimates of $743.8 million (16.8% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $17.85 billion at the midpoint EPS (GAAP) guidance for the full year is $40.25 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 14.9%, in line with the same quarter last year Free Cash Flow Margin: 4.4%, down from 7.8% in the same quarter last year Organic Revenue rose 5.1% year on year, in line with the same quarter last year Market Capitalization: $49.94 billion "Our team remains focused on our customers, fostering deep relationships, providing exceptional service and driving innovation through differentiated capabilities," said D.G. Macpherson, Chairman and CEO. Company Overview Founded as a supplier of motors, W.W. Grainger (NYSE:GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, W.W. Grainger grew its sales at a decent 8.5% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. W.W. Grainger's recent performance shows its demand has slowed as its annualized revenue growth of 4.5% over the last two years was below its five-year trend. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, W.W. Grainger's organic revenue averaged 5.3% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, W.W. Grainger reported year-on-year revenue growth of 5.6%, and its $4.55 billion of revenue exceeded Wall Street's estimates by 0.6%. Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months, similar to its two-year rate. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. W.W. Grainger has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 14.3%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, W.W. Grainger's operating margin rose by 4.3 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, W.W. Grainger generated an operating margin profit margin of 14.9%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. W.W. Grainger's EPS grew at an astounding 28.1% compounded annual growth rate over the last five years, higher than its 8.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of W.W. Grainger's earnings can give us a better understanding of its performance. As we mentioned earlier, W.W. Grainger's operating margin was flat this quarter but expanded by 4.3 percentage points over the last five years. On top of that, its share count shrank by 10.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For W.W. Grainger, its two-year annual EPS growth of 6.6% was lower than its five-year trend. This wasn't great, but at least the company was successful in other measures of financial health. In Q2, W.W. Grainger reported EPS at $9.97, up from $9.51 in the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects W.W. Grainger's full-year EPS of $39.41 to grow 8.5%. Key Takeaways from W.W. Grainger's Q2 Results It was encouraging to see W.W. Grainger beat analysts' EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance slightly missed and its EPS fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 11.2% to $923 immediately after reporting. So do we think W.W. Grainger is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
GRAINGER REPORTS RESULTS FOR THE SECOND QUARTER 2025
Continued execution fueling solid results;Company updates full year 2025 guidance Second Quarter Highlights Delivered sales of $4.6 billion, up 5.6%, or 5.1% on a daily, constant currency basis Achieved operating margin of 14.9%, down 20 basis points on a reported basis, or down 50 basis points on an adjusted basis Generated diluted EPS of $9.97, up 4.8% on a reported basis, or up 2.2% on an adjusted basis Produced $377 million in operating cash flow and returned $336 million to Grainger shareholders through dividends and share repurchases Updating full year 2025 guidance including a lower adjusted diluted EPS range of $38.50 to $40.25 CHICAGO, Aug. 1, 2025 /PRNewswire/ -- Grainger (NYSE: GWW) today reported results for the second quarter of 2025 with sales of $4.6 billion, up 5.6%, or 5.1% on a daily, constant currency basis, and adjusted diluted EPS of $9.97, up 2.2% compared to the second quarter of 2024. "Our team remains focused on our customers, fostering deep relationships, providing exceptional service and driving innovation through differentiated capabilities," said D.G. Macpherson, Chairman and CEO. "Our headline results for the quarter finished largely in-line with communicated expectations, although performance was impacted by some tariff-related factors which are also flowing into our updated outlook. Even amid ongoing macroeconomic uncertainty, our commitment to our customers remains steadfast, and we're well-positioned to continue creating value for all stakeholders." 2025 Second Quarter Financial Summary ($ in millions, except per share amounts) Q2 2025 Q2 2024 Q2'25 vs. Q2'24 Fav. / (Unfav.)Reported Adjusted Reported Adjusted(1) Reported Adjusted Net Sales $4,554 $4,554 $4,312 $4,312 5.6 % 5.6 % Gross Profit $1,755 $1,755 $1,694 $1,694 3.6 % 3.6 % Operating Earnings $678 $678 $649 $665 4.5 % 2.0 % Net Earnings Attributable to W.W. Grainger, Inc. $482 $482 $470 $482 2.6 % — % Diluted Earnings Per Share $9.97 $9.97 $9.51 $9.76 4.8 % 2.2 %Gross Profit Margin 38.5 % 38.5 % 39.3 % 39.3 % (80) bps (80) bps Operating Margin 14.9 % 14.9 % 15.1 % 15.4 % (20) bps (50) bps Effective Tax Rate 23.2 % 23.2 % 22.9 % 22.9 % (30) bps (30) bps (1) Results exclude restructuring costs incurred in the second quarter of 2024. See the supplemental information of this release for further information regarding the Company's non-GAAP measures including reconciliations to the most directly comparable GAAP in the quarter increased 5.6% compared to the second quarter of 2024. When normalizing for the impact of foreign currency exchange, sales on a daily, constant currency basis increased 5.1% compared to the second quarter of 2024. In the High-Touch Solutions - N.A. segment, sales were up 2.5%, or 2.8% on a daily, constant currency basis compared to the second quarter of 2024 driven by growth across all geographies. In the Endless Assortment segment, sales were up 19.7%, or 16.3% on a daily, constant currency basis compared to the second quarter of 2024. Revenue growth for the segment was driven by strong performance at both MonotaRO and Zoro. Gross Profit MarginGross profit margin was 38.5% in the second quarter of 2025, a decrease of 80 basis points from the second quarter of 2024. In the High-Touch Solutions - N.A. segment, gross profit margin was 41.0%, a 70 basis point decrease compared to the prior year quarter as tariff-related inflation caused unfavorable price / cost timing and last-in, first-out (LIFO) inventory valuation headwinds. In the Endless Assortment segment, gross profit margin increased by 30 basis points from the second quarter of 2024 due primarily to margin improvement at Zoro. EarningsFor the second quarter of 2025, total Company operating earnings were $678 million, up 4.5% on a reported basis compared to the second quarter of 2024, or up 2.0% on an adjusted basis when removing restructuring costs incurred in the prior year period. Operating margin was 14.9%, a 20 basis point decrease on a reported basis compared to the second quarter of 2024, or a 50 basis point decrease on an adjusted basis. Unfavorable gross margin in High-Touch Solutions - N.A. was partially offset by strong expense leverage in Endless Assortment. Diluted earnings per share for the second quarter of 2025 were $9.97, up 4.8% on a reported basis compared to the second quarter of 2024, or up 2.2% on an adjusted basis. The increase was driven primarily by fewer shares outstanding. Tax RateFor the second quarter of 2025, the effective tax rate was 23.2%, compared to 22.9% in the second quarter of 2024. Both figures were consistent on a reported and adjusted basis. Cash FlowDuring the second quarter of 2025, the Company generated $377 million of cash flow from operating activities as net earnings were partially offset by unfavorable working capital. The Company invested $175 million in capital expenditures, resulting in free cash flow of $202 million. During the quarter, the Company returned $336 million to Grainger shareholders through dividends and share repurchases. GuidanceThe Company is updating the following guidance ranges to reflect anticipated headwinds from certain known tariff impacts. Total Company(1) Previous 2025 Guidance Range (as of May 1, 2025) Updated 2025 Guidance Range (as of August 1, 2025) Net Sales $17.6 - $18.1 billion $17.9 - $18.2 billion Sales growth 2.7% - 5.2% 4.4% - 5.9% Daily, constant currency sales growth 4.0% - 6.5% 4.5% - 6.0% Gross Profit Margin 39.1% - 39.4% 38.6% - 38.9% Operating Margin 15.1% - 15.5% 14.7% - 15.1% Diluted Earnings per Share $39.00 - $41.50 $38.50 - $40.25 Operating Cash Flow $2.05 - $2.25 billion $2.05 - $2.25 billion CapEx (cash basis) $0.45 - $0.55 billion $0.55 - $0.65 billion Share Buyback $1.15 - $1.25 billion $1.05 - $1.15 billion Effective Tax Rate ~23.8% ~23.8%Segment Operating Margin High-Touch Solutions - N.A. 17.0% - 17.4% 16.5% - 16.9% Endless Assortment 8.5% - 9.0% 9.2% - 9.6% (1) Guidance provided is on an adjusted basis. Daily, constant currency sales growth is adjusted for the impact of one less selling day in 2025 as compared to 2024 and changes in foreign currency exchange. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release. Webcast The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Friday, August 1, 2025, to discuss the second quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at To access the conference call via phone, please send a request to InvestorRelations@ For those unable to participate in the live event, a webcast replay will be available for 90 days at About Grainger W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America, Japan and the United Kingdom. At Grainger, We Keep the World Working® by serving more than 4.5 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2024 revenue of $17.2 billion. For more information, visit Visit to view information about the Company, including a supplement regarding 2025 second quarter results and additional Company information. Safe Harbor Statement All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies, including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our efforts and programs related to environmental, social and governance matters; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In millions of dollars, except for share and per share amounts) (Unaudited) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Net sales $ 4,554$ 4,312$ 8,860$ 8,547 Cost of goods sold 2,7992,6185,3955,185 Gross profit 1,7551,6943,4653,362 Selling, general and administrative expenses 1,0771,0452,1152,044 Operating earnings 6786491,3501,318 Other (income) expense:Interest expense – net 20204141 Other – net (3)(7)(9)(14) Total other expense – net 17133227 Earnings before income taxes 6616361,3181,291 Income tax provision 153146310304 Net earnings 5084901,008987 Less net earnings attributable to noncontrolling interest 26204739 Net earnings attributable to W.W. Grainger, Inc. $ 482$ 470$ 961$ 948 Earnings per share:Basic $ 9.99$ 9.54$ 19.87$ 19.20 Diluted $ 9.97$ 9.51$ 19.83$ 19.13 Weighted average number of shares outstanding:Basic 48.049.048.149.1 Diluted 48.149.248.249.3 W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) (Unaudited) As of(Unaudited) Assets June 30, 2025December 31, 2024 Current assetsCash and cash equivalents $ 597$ 1,036 Accounts receivable (less allowance for credit losses of $34 and $32, respectively) 2,4722,232 Inventories – net 2,3572,306 Prepaid expenses and other current assets 224163 Total current assets 5,6505,737 Property, buildings and equipment – net 2,1071,927 Goodwill 365355 Intangibles – net 267243 Operating lease right-of-use 355371 Other assets 193196 Total assets $ 8,937$ 8,829 Liabilities and Shareholders' EquityCurrent liabilitiesCurrent maturities $ 2$ 499 Trade accounts payable 1,204952 Accrued compensation and benefits 260324 Operating lease liability 8178 Accrued expenses 414407 Income taxes payable 4145 Total current liabilities 2,0022,305 Long-term debt 2,3412,279 Long-term operating lease liability 305327 Deferred income taxes and tax uncertainties 102101 Other non-current liabilities 104114 Shareholders' equity 4,0833,703 Total liabilities and shareholders' equity $ 8,937$ 8,829 W.W. Grainger, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions of dollars) (Unaudited) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Cash flows from operating activities:Net earnings $ 508$ 490$ 1,008$ 987 Adjustments to reconcile net earnings to net cash provided by operating activities:Provision for credit losses 661312 Deferred income taxes and tax uncertainties 517115 Depreciation and amortization 6460125116 Non-cash lease expense 21204141 Stock-based compensation 23233534 Change in operating assets and liabilities:Accounts receivable (84)(42)(212)(205) Inventories (25)(5)(19)71 Prepaid expenses and other assets (14)43(33)(42) Trade accounts payable 77(18)231184 Operating lease liabilities (28)(24)(53)(47) Accrued liabilities (18)17(60)(18) Income taxes – net (143)(169)(37)(62) Other non-current liabilities (15)(7)(17)(14) Net cash provided by operating activities 3774111,0231,072 Cash flows from investing activities:Capital expenditures (175)(76)(300)(195) Proceeds from sale of assets 4—41 Other – net 13171317 Net cash used in investing activities (158)(59)(283)(177) Cash flows from financing activities:Proceeds from debt 622633 Payments of debt (1)—(503)(17) Proceeds from stock options exercised —1210 Payments for employee taxes withheld from stock awards (27)(30)(30)(40) Purchases of treasury stock (226)(244)(507)(512) Cash dividends paid (110)(101)(225)(206) Other – net (1)—(1)(1) Net cash used in financing activities (303)(372)(1,201)(763) Exchange rate effect on cash and cash equivalents 15(15)22(23) Net change in cash and cash equivalents (69)(35)(439)109 Cash and cash equivalents at beginning of period 6668041,036660 Cash and cash equivalents at end of period $ 597$ 769$ 597$ 769 SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAPFINANCIAL MEASURES (Unaudited) The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with the non-GAAP financial measures as defined below. The Company believes these non-GAAP financial measures provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results. Basis of presentationThe Company has a controlling ownership interest in MonotaRO, which is part of our Endless Assortment segment. MonotaRO's results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO's externally reported financials which follow Japanese GAAP. Adjusted gross profit, adjusted SG&A, adjusted operating earnings, adjusted operating margin, adjusted net earnings, adjusted diluted EPS Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures and other non-recurring, infrequent or unusual gains and losses (together referred to as "non-GAAP adjustments"), from the Company's most directly comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating earnings, net earnings and EPS). The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results. Free cash flow (FCF) Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow. Daily sales Refers to sales for the period divided by the number of U.S. selling days for the period. Daily, constant currency salesRefers to daily sales adjusted for changes in foreign currency exchange rates. Daily, organic constant currency salesRefers to daily sales excluding the sales of certain divested businesses in the comparable prior year period and changes in foreign currency exchange rates. Foreign currency exchangeCalculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate. U.S. selling days:2024: Q1-64, Q2-64, Q3-64, Q4-64, FY-2562025: Q1-63, Q2-64, Q3-64, Q4-64, FY-2552026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255 As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided. The reconciliations provided below reconcile GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, constant currency sales; and free cash flow. Sales growth for the three months ended June 30, 2025 (percent change compared to prior year period) (unaudited) Q2 2025Total Company High-Touch Solutions - N.A. Endless Assortment Reported sales 5.6 % 2.5 % 19.7 % Daily impact — % — % — % Daily sales(1) 5.6 % 2.5 % 19.7 % Foreign currency exchange(2) (0.5) % 0.3 % (3.4) % Daily, constant currency sales 5.1 % 2.8 % 16.3 % (1) Based on U.S. selling days, there was 64 selling days in Q2 2025 and Q2 2024. (2) Excludes the impact of year-over-year foreign currency exchange rate fluctuations. Free cash flow (FCF) for the three months ended June 30, 2025 (in millions of dollars) (unaudited) Q2 2025 Net cash flows provided by operating activities $ 377 Capital expenditures (175) Free cash flow $ 202 Income statement adjustments for the three months ended June 30, 2025 and 2024 (in millions of dollars) (unaudited) Q2 2025Reported Adjusted(2) ReportedAdjustedReported Adjustment(1) Adjusted % of Net salesY/Y Earnings reconciliation: SG&A $ 1,077$ —$ 1,07723.6 %23.6 %3.1 %4.7 % Operating earnings 678—67814.914.94.52.0 Other expense — net (17)—(17)0.30.330.830.8 Earnings before income taxes 661—66114.614.63.91.4 Income tax provision(3) (153)—(153)3.43.44.82.0 Net earnings 508—50811.211.23.71.2 Noncontrolling interest(4) (26)—(26)0.60.630.030.0 Net earnings attributable to W.W. Grainger, Inc. $ 482$ —$ 48210.6 %10.6 %2.6 %— % Diluted earnings per share: $ 9.97—$ 9.974.8 %2.2 % Q2 2024Reported Adjusted(2) ReportedAdjustedReported Adjustment(1)Adjusted % of Net salesY/Y Earnings reconciliation: SG&A $ 1,045$ (16)$ 1,02924.2 %23.9 %6.3 %4.7 % Operating earnings 6491666515.115.4(1.8)0.6 Other expense — net (13)—(13)0.30.3(18.8)(18.8) Earnings before income taxes 6361665214.815.1(1.4)1.1 Income tax provision(3) (146)(4)(150)3.43.4(5.8)(3.2) Net earnings 4901250211.411.7—2.4 Noncontrolling interest(4) (20)—(20)0.50.5—— Net earnings attributable to W.W. Grainger, Inc. $ 470$ 12$ 48210.9 %11.2 %— %2.6 % Diluted earnings per share: $ 9.510.25$ 9.762.5 %5.2 % (1) Reflects restructuring costs incurred in the second quarter of 2024 of $15M and $1M in Grainger's HTS-N.A. segment and Other businesses, respectively. There were no non-GAAP adjustments for three months ended June 30, 2025. (2) Calculated on the basis of reported net sales for the second quarter of 2025 and 2024. (3) Reflects a tax benefit related to the restructuring costs incurred in the second quarter of 2024. The Company's reported and adjusted effective tax rates were 23.2% and 22.9% for the second quarter of 2025 and 2024, respectively. (4) The Company has a controlling ownership interest in MonotaRO with the residual representing noncontrolling interest. View original content: SOURCE W.W. Grainger, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
29-07-2025
- Business
- Globe and Mail
Grainger Stock Gears Up to Report Q2 Earnings: What to Expect?
W.W. Grainger, Inc. GWW is scheduled to report second-quarter 2025 results on August 1, before the opening bell. The Zacks Consensus Estimate for GWW's sales is pegged at $4.52 billion, indicating 4.8% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at $10.00 per share. The consensus estimate for GWW's earnings has moved up 0.1% in the past 60 days. The estimate indicates a year-over-year increase of 2.5%. GWW's Earnings Surprise History Grainger's earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in two, the average surprise being 1.2%. What the Zacks Model Unveils for Grainger Our proven model does not conclusively predict an earnings beat for GWW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Earnings ESP: Grainger has an Earnings ESP of -0.26%. Zacks Rank: GWW currently carries a Zacks Rank of 3. Factors Likely to Have Shaped GWW's Q2 Performance Grainger has been witnessing strong growth in core product sales for the past few quarters. GWW has been focusing on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities, and executing improvement initiatives within its supply chain. These factors are likely to have contributed to its quarterly performance. We expect organic daily sales growth of 3.8%. The company's High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing; strong revenue growth across its North America regions; and an expansion in the number of large and midsize customers. Our model projects quarterly organic daily sales growth of 2.2% from the year-ago quarter's reported level. Grainger has been witnessing market-beating growth in the High-Touch Solutions segment compared with the U.S. MRO (maintenance, repair and operating) market. This outperformance can be attributed to strategic activities, such as building advantaged MRO solutions, delivering unparalleled customer services, and offering differentiated sales and services. We expect the segment's sales to be $3.53 billion for the second quarter, up 2.2% from the second-quarter 2024 reported level. GWW's Endless Assortment segment is likely to have benefited from robust customer acquisition and repeat business. Our model predicts quarterly organic daily sales to grow 11% from the prior-year reported level. Customer growth at MonotaRO and Zoro is expected to have positively impacted the segment's sales. Our model predicts the Endless Assortment segment's sales to be $862 million, up 11% from the prior-year quarter's reported figure. However, GWW has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A costs due to higher technology investments, is likely to have negatively impacted its margins. Grainger Stock's Price Performance Grainger's shares have gained 9.4% in a year compared with the industry' s 13.7% rise. Stocks That Warrant a Look Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases. Emerson Electric Co. EMR, expected to release earnings on August 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Emerson Electric's earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%. Illinois Tool Works Inc. ITW, slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Illinois Tool Works' second-quarter 2025 earnings is pegged at $2.56 per share, suggesting a year-over-year rise of 0.8%. ITW has a trailing four-quarter average surprise of 3%. Eaton Corporation plc ETN is scheduled to release its second-quarter 2025 results on August 5. It has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Eaton's second-quarter 2025 earnings is pegged at $2.92 per share, suggesting a year-over-year rise of 6.9%. Eaton has a trailing four-quarter average surprise of 1.8%. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
Yahoo
16-07-2025
- Business
- Yahoo
SIEGY or GWW: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Industrial Services sector have probably already heard of Siemens AG (SIEGY) and W.W. Grainger (GWW). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Siemens AG and W.W. Grainger are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SIEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. SIEGY currently has a forward P/E ratio of 18.89, while GWW has a forward P/E of 25.68. We also note that SIEGY has a PEG ratio of 2.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GWW currently has a PEG ratio of 2.73. Another notable valuation metric for SIEGY is its P/B ratio of 2.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GWW has a P/B of 12.98. These metrics, and several others, help SIEGY earn a Value grade of B, while GWW has been given a Value grade of D. SIEGY stands above GWW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIEGY is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Siemens AG (SIEGY) : Free Stock Analysis Report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
