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Mar 31, 2021
Grainger Q1 2021 Earnings Report
Reported strong revenue and earnings growth with full year guidance provided as economic trends improved.
Key Takeaways
Grainger reported a strong first quarter in 2021, with sales of $3.1 billion, up 2.8% from Q1 2020. The company's performance was driven by strong results in both the High-Touch Solutions North America and Endless Assortment segments. Given the strong performance in the first quarter, the company is now providing guidance for the full year.
Delivered sales of $3.1 billion, up 2.8%, and up 5.9% on an organic, daily, constant currency basis compared to the first quarter 2020.
Expanded reported and adjusted operating margins by 630 and 20 basis points, respectively.
Generated $294 million in operating cash flow and returned $256 million to shareholders through dividends and share repurchases.
Provides full year guidance: Total company daily revenue growth of 8.5-11.0% and earnings per share of $19.00-20.50.
Forward Guidance
Company provides full year guidance: Total company daily revenue growth of 8.5-11.0% and earnings per share of $19.00-20.50.
Positive Outlook
- Net Sales: $12.7 - 13.0 billion
- Daily growth: 8.5 - 11.0%
- Organic, daily growth: 10.0 - 12.5%
- Gross Profit Margin: 36.1 - 36.6%
- Operating Margin: 11.8 - 12.4%
Challenges Ahead
- Earnings per Share: $19.00 - 20.50
- Operating Cash Flow: $1.0 - 1.2 billion
- CapEx (cash basis): $225 - 275 million
- Share Buyback: $600 - 700 million
- Tax Rate: 25.0 - 26.0%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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