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Feb 26, 2022
MSC Q2 2022 Earnings Report
MSC's financial performance significantly improved in the second quarter of fiscal year 2022, marked by double-digit sales growth and enhanced profitability.
Key Takeaways
MSC Industrial Supply Co. reported a strong second quarter in fiscal 2022, with net sales increasing by 11.4% to $862.5 million. The company's diluted EPS rose to $1.25, and adjusted diluted EPS increased by 25.2% to $1.29. The company is raising its annual adjusted operating margin framework to between 12.5% and 13.1%.
Net sales increased by 11.4% to $862.5 million.
Diluted EPS increased to $1.25, compared to $0.32 in the prior year quarter.
Adjusted diluted EPS increased by 25.2% to $1.29.
The company is raising its fiscal 2022 annual adjusted operating margin framework to between 12.5% and 13.1%.
MSC
MSC
Forward Guidance
MSC Industrial Supply Co. is adding a low double-digit growth tier to its fiscal 2022 annual adjusted operating margin framework with a corresponding annual adjusted operating margin between 12.5% and 13.1%.
Positive Outlook
- Gross margin countermeasures are working well.
- Company can keep gross margins flat or better for full year fiscal 2022 versus fiscal 2021.
- Strong top line growth combined with gross margin execution and Mission Critical cost savings resulted in 11.6% adjusted operating margin.
- Adjusted incremental margin was 22.4% over the prior year fiscal second quarter.
- Company is already at or above long-range target of growing sales by at least 400 basis points above the Industrial Production Index.
Challenges Ahead
- Impact of the COVID-19 pandemic on sales, operations, and supply chain.
- General economic conditions in the markets.
- Volatility in commodity and energy prices, the impact of prolonged periods of low, high and rapid inflation, and fluctuations in interest rates.
- Risk of customer cancellation or rescheduling of orders.
- Work stoppages, labor shortages or other business interruptions.