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Jun 30, 2024
Grainger Q2 2024 Earnings Report
Grainger reported resilient performance driven by operational execution, narrowing its 2024 earnings outlook.
Key Takeaways
Grainger reported Q2 2024 sales of $4.3 billion, up 3.1% (5.1% on a daily, organic constant currency basis), and adjusted diluted EPS of $9.76, up 5.2% compared to Q2 2023. The company narrowed its 2024 total company guidance ranges, including daily, organic constant currency sales growth of 4.0% to 6.0% and adjusted diluted EPS of $38.00 to $39.50.
Sales reached $4.3 billion, a 3.1% increase, or 5.1% on a daily, organic constant currency basis.
Reported operating margin was 15.1%, a decrease of 70 basis points, or 15.4% on an adjusted basis, down 40 basis points.
Diluted EPS was $9.51 on a reported basis, up 2.5%, or $9.76 on an adjusted basis, up 5.2%.
Operating cash flow was $411 million, with $345 million returned to shareholders through dividends and share repurchases.
Forward Guidance
The Company is providing the following updated total company 2024 guidance, including a narrowed earnings outlook.
Positive Outlook
- Net Sales: $17.0 - $17.3 billion
- Sales Growth: 3.2% - 5.2%
- Daily, organic constant currency sales growth: 4.0% - 6.0%
- Gross Profit Margin: 39.2% - 39.4%
- Operating Margin: 15.3% - 15.7%
Challenges Ahead
- Diluted Earnings per Share: $38.00 - $39.50
- Operating Cash Flow: $1.95 - $2.15 billion
- CapEx (cash basis): $0.4 - $0.475 billion
- Share Buyback: $1.0 - $1.2 billion
- Effective Tax Rate: ~24.0%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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