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Jun 30, 2023
Grainger Q2 2023 Earnings Report
Delivered strong results driven by focused execution, and raised the midpoint of full year 2023 guidance.
Key Takeaways
Grainger reported strong second-quarter results with sales of $4.2 billion, up 9.0%, and diluted EPS of $9.28, up 29.1% compared to the second quarter of 2022. The company raised the midpoint of its full-year revenue and EPS guidance ranges, expecting continued strong execution in the back half of 2023.
Sales reached $4.2 billion, a 9.0% increase, or 10.1% on a daily, constant currency basis.
Operating earnings increased by 23.5% to $661 million, with an operating margin of 15.8%, up 190-basis points.
Diluted EPS increased by 29.1% to $9.28.
Operating cash flow was $450 million, and $265 million was returned to shareholders through dividends and share repurchases.
Forward Guidance
Grainger is raising the midpoint of its full year 2023 total Company revenue and EPS guidance ranges.
Positive Outlook
- Daily sales growth of 8.5% to 11%.
- Diluted EPS of $35.00 to $36.75 per share.
- Operating Cash Flow $1.70 - $1.85 billion
- Share Buyback $750 - $850 million
- High-Touch Solutions - N.A. Segment Operating Margin 17.3% - 17.8%
Challenges Ahead
- Endless Assortment Segment Operating Margin 7.4% - 7.8%
- CapEx (cash basis) $450 - $525 million
- Net Sales $16.4 - $16.8 billion
- Gross Profit Margin 39.1% - 39.4%
- Operating Margin 15.2% - 15.7%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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