MSC Industrial Direct
The 10-second takeaway
For the quarter ended Nov. 26 (Q1), MSC Industrial Direct met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share grew significantly.
Margins grew across the board.
MSC Industrial Direct booked revenue of $546 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $545 million. Sales were 15% higher than the prior-year quarter's $473 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.95. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $0.95 for Q1 were 26% higher than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.2%, 20 basis points better than the prior-year quarter. Operating margin was 17.7%, 140 basis points better than the prior-year quarter. Net margin was 11%, 90 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $555 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $2.3 billion. The average EPS estimate is $4.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 463 members out of 475 rating the stock outperform, and 12 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give MSC Industrial Direct a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MSC Industrial Direct is outperform, with an average price target of $75.67.
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