MSC Industrial's Q1 sales rise 4%, slightly beat estimates

Overview

• North American metalworking products and services distributor's fiscal Q1 revenue rose 4%, slightly beating analysts' expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations, rising to $0.99 from $0.86

• Company cites improved execution and cost optimization for growth

Outlook

• Company expects Q2 fiscal 2026 ADS growth of 3.5%-5.5% YoY

• MSC Industrial maintains full-year fiscal 2026 depreciation and amortization expense at $95M-$100M

• Company anticipates Q2 adjusted operating margin of 7.3%-7.9%

Result Drivers

• GROWTH INITIATIVES - CEO Martina McIsaac credited recent growth initiatives for driving average daily sales growth and outperforming the Industrial Production Index by 180 basis points

• COST OPTIMIZATION - Improved execution and focus on cost optimization contributed to profitable growth and operating margin expansion, according to CEO Martina McIsaac

• OPERATING MARGIN EXPANSION - VP Greg Clark highlighted a 10 basis point increase in operating margin, or 40 basis points on an adjusted basis, as a key achievement

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for MSC Industrial Direct Co Inc is $90.00, about 6% above its January 6 closing price of $84.94

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nACScx1GYa

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