W.W. Grainger (NYSE: GWW ) reported earnings on Oct. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), W.W. Grainger missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins increased, operating margins dropped, net margins dropped.
W.W. Grainger logged revenue of $2.28 billion. The 16 analysts polled by S&P Capital IQ expected revenue of $2.32 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $2.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.81. The 18 earnings estimates compiled by S&P Capital IQ predicted $2.90 per share. GAAP EPS of $2.15 for Q3 were 14% lower than the prior-year quarter's $2.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.6%, 40 basis points better than the prior-year quarter. Operating margin was 11.1%, 320 basis points worse than the prior-year quarter. Net margin was 6.8%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.24 billion. On the bottom line, the average EPS estimate is $2.53.
Next year's average estimate for revenue is $8.98 billion. The average EPS estimate is $10.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 220 members out of 236 rating the stock outperform, and 16 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give W.W. Grainger a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on W.W. Grainger is outperform, with an average price target of $222.27.
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