The 10-second takeaway
For the quarter ended March 31 (Q1), W.W. Grainger met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share expanded.
Margins expanded across the board.
W.W. Grainger logged revenue of $2.28 billion. The 17 analysts polled by S&P Capital IQ predicted revenue of $2.30 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.94. The 20 earnings estimates compiled by S&P Capital IQ predicted $2.73 per share. GAAP EPS of $2.94 for Q1 were 14% higher than the prior-year quarter's $2.57 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 45.2%, 80 basis points better than the prior-year quarter. Operating margin was 15.1%, 120 basis points better than the prior-year quarter. Net margin was 9.3%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.41 billion. On the bottom line, the average EPS estimate is $2.92.
Next year's average estimate for revenue is $9.60 billion. The average EPS estimate is $11.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 239 rating the stock outperform, and 16 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give W.W. Grainger a green thumbs-up, and four 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 $236.44.
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