•
Sep 30, 2020

Grainger Q3 2020 Earnings Report

Achieved strong revenue and share growth while expanding operating margins.

Key Takeaways

Grainger reported a 2.4% increase in sales to $3.0 billion for the third quarter of 2020, with organic daily sales up 4.6% compared to the third quarter of 2019. The company experienced expanded operating margins and generated $311 million in operating cash flow, returning $82 million to shareholders through dividends. They also repaid their revolving credit facility and plan to restart their share repurchase program in Q4 2020.

Sales of $3.0 billion, up 2.4%, and up 4.6% on an organic daily basis compared to Q3 2019.

Reported and adjusted operating margins expanded by 110 and 90 basis points respectively.

Generated $311 million in operating cash flow and returned $82 million to shareholders through dividends.

Revolving credit facility was repaid and the dividend was increased in Q3 2020; share repurchase program to restart in Q4 2020.

Total Revenue
$3.02B
Previous year: $2.95B
+2.4%
EPS
$4.52
Previous year: $4.26
+6.1%
Operating Margin
12.6%
Previous year: 11.4%
+10.5%
Adjusted Operating Margin
12.4%
Previous year: 11.5%
+7.8%
Tax Rate
29.3%
Previous year: 24.2%
+21.1%
Gross Profit
$1.07B
Previous year: $1.1B
-2.3%
Cash and Equivalents
$859M
Previous year: $286M
+200.3%
Free Cash Flow
$252M
Previous year: $264M
-4.5%
Total Assets
$6.58B
Previous year: $5.92B
+11.2%

Grainger

Grainger

Forward Guidance

No forward guidance was given in the provided text.