CHICAGO - Grainger (NYSE: GWW), a leading broad line distributor, reported a slight increase in its first-quarter earnings, surpassing analyst estimates by $0.02 with an adjusted EPS of $9.62.
However, the company's revenue for the quarter fell short of expectations, coming in at $4.2 billion against the consensus estimate of $4.26 billion. Despite the revenue miss, the company has reaffirmed its full-year 2024 guidance, maintaining a positive outlook for the year ahead.
In comparison to the first quarter of the previous year, Grainger's sales rose by 3.5%, or 4.9% on a daily, organic constant currency basis. The company's operating margin saw a decrease of 80 basis points, settling at 15.8%. While diluted EPS saw a marginal increase from $9.61 to $9.62, gross profit margin declined by 50 basis points to 39.4%.
Chairman and CEO D.G. Macpherson commented on the results, stating, "Our 2024 performance so far shows that the team is focusing on what matters and living our purpose—We Keep the World Working®. We've produced solid results amidst a slow, but steady demand environment." Macpherson emphasized the company's readiness to achieve its guidance outlook for the year, aiming to deliver a flawless experience and tangible value for customers.
For the full year 2024, Grainger expects adjusted EPS to be in the range of $38.00 to $40.50, with the midpoint of $39.25 being slightly below the analyst consensus of $39.38. The company's revenue guidance for the year stands at $17.2 to $17.7 billion, with the midpoint of $17.45 billion marginally below the consensus estimate of $17.469 billion.
The company's financial health appears robust, with $661 million generated in operating cash flow during the quarter. Grainger also returned $360 million to shareholders through dividends and share repurchases, and announced a dividend increase of 10%. Additionally, the company has refreshed its repurchase authorization for up to 5 million shares of common stock.
Grainger's reaffirmed guidance reflects confidence in its strategic focus and its ability to navigate a challenging economic landscape. As the company continues its operations across North America, Japan, and the United Kingdom, it remains committed to serving its customer base of over 4.5 million with a wide range of maintenance, repair, and operating (MRO) products and services.
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