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May 28, 2022
MSC Q3 2022 Earnings Report
MSC Industrial Supply Co. reported third quarter results, achieving double-digit average daily sales growth and expanding adjusted operating margin.
Key Takeaways
MSC Industrial Supply Co. reported a 10.7% increase in net sales, reaching $958.6 million. The company's diluted EPS increased to $1.78, and adjusted diluted EPS rose to $1.82. They expect double-digit average daily sales growth to continue in fiscal Q4.
Net sales increased by 10.7% year-over-year, reaching $958.6 million.
Gross margin improved to 42.9% compared to 42.3% in the prior year quarter.
Operating margin was strong at 14.3%, or 14.6% excluding certain costs.
Diluted EPS increased by 6.0% to $1.78, and adjusted diluted EPS increased by 28.2% to $1.82.
Forward Guidance
The company anticipates continued double-digit average daily sales growth into fiscal Q4 and expects to finish the year in the top scenario of their fiscal 2022 annual framework.
Positive Outlook
- Company expects double digit average daily sales growth to continue in fiscal Q4
- Achieved double-digit average daily sales growth, roughly 500 basis points above the Industrial Production (“IP”) index
- Grew gross margins sequentially and year over year thanks to strong price realization in an inflationary environment
- Translated top line growth into significant operating leverage
- Adjusted operating margin expansion
Challenges Ahead
- Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated
- General economic conditions in the markets may impact business
- Volatility in commodity and energy prices may have adverse effect
Historical Earnings Impact
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Avg. Return Before/After Earnings
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