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Sep 30, 2022

Grainger Q3 2022 Earnings Report

Delivered strong results driven by focused execution and raised full year 2022 guidance.

Key Takeaways

Grainger reported a strong third quarter in 2022, with sales up 16.9% to $3.9 billion. The company's performance was driven by focused execution and the ability to serve customers well in the current demand environment, leading to an increase in full year guidance.

Sales reached $3.9 billion, a 16.9% increase compared to Q3 2021, and 20.3% on a daily, constant currency basis.

Gross margin expanded by 145 bps compared to Q3 2021.

Operating earnings increased by 37.6% to $603 million, resulting in diluted EPS of $8.27, a 46.4% increase.

$380 million in operating cash flow was generated, and $286 million was returned to shareholders through dividends and share repurchases.

Total Revenue
$3.94B
Previous year: $3.37B
+16.9%
EPS
$8.27
Previous year: $5.65
+46.4%
Daily Sales Growth
16.9%
Gross Profit Margin
38.5%
Operating Margin
15.3%
Previous year: 13%
+17.7%
Gross Profit
$1.52B
Previous year: $1.25B
+21.5%
Cash and Equivalents
$315M
Previous year: $328M
-4.0%
Free Cash Flow
$335M
Previous year: $111M
+201.8%
Total Assets
$7.2B
Previous year: $6.39B
+12.7%

Grainger

Grainger

Forward Guidance

Given the strong third quarter results, the Company is raising its 2022 full year guidance expectations. Total Company daily sales growth of 15.5% to 16.5% and diluted EPS range of $29.10 to $29.70.

Positive Outlook

  • Net Sales: $15.1 - $15.2 billion
  • Daily Growth: 15.5% - 16.5%
  • Gross Profit Margin: 38.0% - 38.1%
  • Operating Margin: 14.3% - 14.4%
  • Diluted Earnings per Share: $29.10 - $29.70