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Mar 31, 2024

Grainger Q1 2024 Earnings Report

Grainger's Q1 2024 performance showed strategic focus driving business forward.

Key Takeaways

Grainger reported a 3.5% increase in sales, reaching $4.2 billion, and a diluted EPS of $9.62, up 0.1% compared to Q1 2023. The company reaffirmed its full-year 2024 guidance ranges.

Sales reached $4.2 billion, up 3.5% (4.9% on a daily, organic constant currency basis).

Operating margin was 15.8%, a decrease of 80 basis points.

Diluted EPS increased by $0.01 to $9.62.

Operating cash flow was $661 million, with $360 million returned to shareholders through dividends and share repurchases.

Total Revenue
$4.24B
Previous year: $4.09B
+3.5%
EPS
$9.62
Previous year: $9.61
+0.1%
Gross Profit Margin
39.4%
Previous year: 39.9%
-1.3%
Operating Margin
15.8%
Previous year: 16.6%
-4.8%
Gross Profit
$1.67B
Previous year: $1.63B
+2.1%
Cash and Equivalents
$804M
Previous year: $461M
+74.4%
Free Cash Flow
$542M
Previous year: $356M
+52.2%
Total Assets
$8.4B
Previous year: $7.83B
+7.3%

Grainger

Grainger

Forward Guidance

The company reaffirmed its full-year 2024 guidance ranges as previously announced on February 2, 2024.

Positive Outlook

  • Net Sales: $17.2 - $17.7 billion
  • Sales Growth: 4.3% - 7.3%
  • Daily, organic, constant currency sales growth: 4.0% - 7.0%
  • Gross Profit Margin: 39.1% - 39.4%
  • Operating Margin: 15.3% - 15.8%

Challenges Ahead

  • Diluted Earnings per Share: $38.00 - $40.50
  • Operating Cash Flow: $1.9 - $2.1 billion
  • CapEx (cash basis): $0.4 - $0.5 billion
  • Share Buyback: $0.9 - $1.1 billion
  • Effective Tax Rate: ~24.0%