- WW Grainger Inc GWW reported Revenue for the second quarter of FY22 rose 19.6% year over year to $3.84 billion+22% on a daily basis at constant exchange rates, beating the consensus of $3.70 billion.
- Earnings per share improved to $7.19 (+68.4% Y/Y), beating the consensus of $6.65.
- In the High-Touch Solutions NA segment, daily sales increased by 22.2% Y/Y and in the Endless Assortment segment, daily sales increased by 11.4% Y/Y or 21.1% on a daily basis at constant exchange rates , reflecting the significant impact of the depreciation Japanese YEN.
- Gross margin increased 255 basis points to 37.6%. Operating income rose 60% year over year to $534 million, and margin increased 350 basis points to 13.9%.
- Grainger generated $593 million in cash from operations year-to-date compared to $563 million a year ago. Cash and cash equivalents at the end of the quarter were $262 million.
- During the quarter, GWW returned $219 million to shareholders through dividends and share repurchases.
- “Our execution of our strategic initiatives is driving sustained growth and market share gains across the business. After another quarter that beat expectations, we are raising our outlook for 2022 and remain well positioned to deliver an exceptionally strong year,” commented DG Macpherson, Chairman and CEO.
- Outlook for FY22: Grainger expects net sales of $15 billion to $15.2 billion (previous guidance $14.5 billion to $14.9 billion) versus consensus of $14.74 billion.
- It is expected to have a gross profit margin of 37.2% – 37.5% (previously 36.8% – 37.3%) and an operating margin of 13.6% – 14% (previously 13% – 13.6%).
- Expected EPS of $27.25-$28.75 (previously $25.00-$27.00) versus $26.56 consensus.
- The company is forecasting operating cash flow of $1.25 billion to $1.35 billion (previously $1.15 billion to $1.35 billion) and a share buyback of $600 million to $700 million.
- Price promotion: GWW shares are trading up 6.72% at $535.59 on the last check Friday.
- Photo via company
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