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Sep 30, 2023
Grainger Q3 2023 Earnings Report
Reported strong results driven by strategic initiatives and narrowed full-year 2023 guidance range.
Key Takeaways
Grainger reported a strong third quarter in 2023, with sales reaching $4.2 billion, a 6.7% increase, and diluted EPS of $9.43, up 14.1% compared to the third quarter of 2022. The company also narrowed its full-year guidance for daily sales growth to between 8.5% and 9.5% and diluted EPS to between $36.00 and $36.60.
Sales reached $4.2 billion, up 6.7% (8.7% on a daily, constant currency basis).
Operating earnings increased by 10.7% to $667 million, with an operating margin of 15.9%, a 60 basis point increase.
Diluted EPS increased by 14.1% to $9.43.
Operating cash flow was $523 million, with $287 million returned to shareholders through dividends and share repurchases.
Forward Guidance
Grainger narrowed its full-year 2023 guidance, including an updated outlook for daily sales growth between 8.5% to 9.5% and diluted EPS of $36.00 to $36.60.
Positive Outlook
- Net Sales: $16.4 - $16.6 billion
- Sales Growth: 8.0% - 9.1%
- Daily Sales Growth: 8.5% - 9.5%
- Gross Profit Margin: 39.3% - 39.4%
- Operating Margin: 15.6% - 15.7%
Challenges Ahead
- Diluted Earnings per Share: $36.00 - $36.60
- Operating Cash Flow: $1.8 - $1.9 billion
- CapEx (cash basis): $450 - $525 million
- Share Buyback: $800 - $875 million
- Effective Tax Rate: ~24.0%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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