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Mar 31, 2023
Grainger Q1 2023 Earnings Report
Reported strong first quarter performance with sales up 12.2% and diluted EPS up 36.0% compared to Q1 2022, leading to an increased full-year earnings outlook.
Key Takeaways
Grainger reported a strong first quarter in 2023, with sales reaching $4.1 billion, a 12.2% increase, and diluted EPS of $9.61, a 36.0% increase compared to Q1 2022. The company has raised its full-year 2023 guidance due to this strong performance.
Sales reached $4.1 billion, up 12.2% (14.5% on a daily, constant currency basis).
Operating earnings increased by 27.4% to $680 million, with a 16.6% operating margin, up 200 basis points.
Diluted EPS increased by 36.0% to $9.61.
Generated $454 million in operating cash flow and returned $229 million to shareholders through dividends and share repurchases.
Revenue by Segment
Forward Guidance
Grainger is updating its full year 2023 guidance ranges including an increased outlook for diluted EPS, operating cash flow and share repurchases.
Positive Outlook
- Net Sales: $16.2 - $16.8 billion
- Sales Growth: 6.6% - 10.6%
- Daily Sales Growth: 7.0% - 11.0%
- Gross Profit Margin: 39.1% - 39.4%
- Operating Margin: 15.2% - 15.7%
Challenges Ahead
- CapEx (cash basis): $450 - $525 million
- Effective Tax Rate: ~24.0%
- Endless Assortment Operating Margin: 7.9% - 8.3%
- Diluted Earnings per Share: $34.25 - $36.75
- Operating Cash Flow: $1.6 - $1.8 billion
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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