The 10-second takeaway
For the quarter ended Dec. 31 (Q4), W.W. Grainger met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins were steady, operating margins expanded, net margins shrank.
W.W. Grainger reported revenue of $2.23 billion. The 16 analysts polled by S&P Capital IQ predicted revenue of $2.24 billion on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $2.08 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 $2.42. The 18 earnings estimates compiled by S&P Capital IQ predicted $2.61 per share. GAAP EPS of $2.17 for Q4 were 6.4% higher than the prior-year quarter's $2.04 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%, about the same as the prior-year quarter. Operating margin was 11.6%, 50 basis points better than the prior-year quarter. Net margin was 7.0%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.29 billion. On the bottom line, the average EPS estimate is $2.77.
Next year's average estimate for revenue is $9.53 billion. The average EPS estimate is $11.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 224 members out of 238 rating the stock outperform, and 14 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give W.W. Grainger a green thumbs-up, and three 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 $215.38.
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