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Jun 30, 2022
Grainger Q2 2022 Earnings Report
Grainger's Q2 2022 performance was driven by strategic growth initiatives, resulting in increased sales and EPS, and leading to raised full-year guidance.
Key Takeaways
Grainger reported strong second-quarter results with sales of $3.8 billion, up 19.6% compared to Q2 2021. The company's EPS increased by 68.4% to $7.19, and operating earnings rose by 60.0% to $534 million. Grainger raised its full-year 2022 guidance, reflecting confidence in continued strong performance.
Sales reached $3.8 billion, a 19.6% increase compared to Q2 2021.
Gross margin expanded by 255 bps compared to the second quarter of 2021.
Operating earnings increased by 60.0% to $534 million, with EPS rising 68.4% to $7.19.
The company increased its full-year 2022 guidance, projecting daily sales growth of 14.5% - 16.5% and an EPS range of $27.25 - $28.75.
Forward Guidance
Grainger is raising its 2022 full year guidance expectations. Updated 2022 guidance includes Net Sales of $15.0 - $15.2 billion, Daily growth of 14.5% - 16.5%, Gross Profit Margin of 37.2% - 37.5%, Operating Margin of 13.6% - 14.0%, Earnings per Share of $27.25 - $28.75, Operating Cash Flow of $1.25 - $1.35 billion, CapEx of $300 - $325 million, Share Repurchase of $600 - $700 million, Tax Rate of ~25.0%, High-Touch Solutions N.A. Segment Operating Margin of 15.4% - 15.8%, and Endless Assortment Segment Operating Margin of 7.7% - 8.2%.
Positive Outlook
- Net Sales: $15.0 - $15.2 billion
- Daily growth: 14.5% - 16.5%
- Gross Profit Margin: 37.2% - 37.5%
- Operating Margin: 13.6% - 14.0%
- Earnings per Share: $27.25 - $28.75
Challenges Ahead
- Operating Cash Flow: $1.25 - $1.35 billion
- CapEx: $300 - $325 million
- Share Repurchase: $600 - $700 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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