MSC Industrial Q2 sales rise 2.9% but miss estimates
Overview
US MRO distributor's fiscal Q2 sales rose 2.9% but missed analyst expectations
Adjusted EPS for fiscal Q2 missed analyst expectations
Company achieved higher operating margin, aided by gross margin expansion and cost cuts
Outlook
Company expects Q3 ADS growth of 5%-7% YoY
MSC Industrial sees Q3 adjusted operating margin at 9.7%-10.3%
Company maintains full-year outlook for depreciation, capex, FCF conversion, and tax rate
Result Drivers
MARGIN EXPANSION - Operating margin benefited from higher gross margin and actions to reduce structural costs, according to interim CFO Greg Clark
CORE CUSTOMER SALES - Core Customer daily sales outperformed total company for third consecutive quarter, per CEO Martina McIsaac
Company press release: ID:nACSqxdHca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $917.80 mln | $931.73 mln (8 Analysts) |
Q2 Adjusted EPS | Miss | $0.82 | $0.84 (8 Analysts) |
Q2 EPS |
| $0.76 |
|
Q2 EBIT |
| $64.8 mln |
|
Q2 EBIT Margin |
| 7.1% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "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 $87.50, about 5.2% below its March 31 closing price of $92.27
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
