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Sep 30, 2024
Grainger Q3 2024 Earnings Report
Grainger's Q3 2024 performance was fueled by strong execution, leading to solid results amidst a slow but steady demand market.
Key Takeaways
Grainger reported a 4.3% increase in sales, reaching $4.4 billion in Q3 2024. Diluted EPS increased by 4.7% to $9.87. The company narrowed its 2024 earnings outlook, projecting daily, organic constant currency sales growth of 4.5% to 5.25% and adjusted diluted EPS of $38.65 to $39.35.
Sales reached $4.4 billion, a 4.3% increase, or 4.0% on a daily, organic constant currency basis.
Operating margin was 15.6%, a decrease of 30 basis points.
Diluted EPS increased by 4.7% to $9.87.
Operating cash flow was $611 million, and $328 million was returned to shareholders through dividends and share repurchases.
Grainger
Grainger
Forward Guidance
The Company is providing the following updated 2024 guidance, including a narrowed earnings outlook.
Positive Outlook
- Net Sales: $17.1 - $17.3 billion
- Sales Growth: 4.0% - 4.75%
- Daily, organic constant currency sales growth: 4.5% - 5.25%
- Gross Profit Margin: 39.3% - 39.4%
- Operating Margin: 15.4% - 15.6%
Challenges Ahead
- Diluted Earnings per Share: $38.65 - $39.35
- Operating Cash Flow: $2.15 - $2.25 billion
- CapEx (cash basis): $0.4 - $0.45 billion
- Share Buyback: $1.1 - $1.2 billion
- Effective Tax Rate: ~23.2%