W.W. Grainger, Inc. GWW has reported adjusted earnings per share (EPS) of $9.71 in fourth-quarter 2024, missing the Zacks Consensus Estimate of $9.75.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Grainger restated EPS for the fourth quarter of 2023 to $7.89, including the adjustment for the loss on sale of Grainger's subsidiary, E&R Industrial Sales, Inc., completed in that quarter. GWW previously reported adjusted EPS of $8.33 for the quarter, which excluded the impacts of the sale. 

Grainger’s quarterly sales rose 5.9% year over year to $4.23 billion. However, the top line missed the Zacks Consensus Estimate of $4.24 billion. Daily sales increased 4.2% from the prior-year quarter. We predicted daily sales to increase 3.8%.

Grainger’s Q4 Segmental Performance

The High-Touch Solutions N.A. segment’s daily sales rose 2.3% in the quarter from the fourth quarter of 2023 due to continued growth across all geographies. Our model predicted year-over-year organic daily sales growth of 5%.

The Endless Assortment segment’s daily sales grew 13.3% in the quarter due to increased customer acquisitions across the segment and enterprise customer growth at MonotaRO. Our model predicted year-over-year organic daily sales growth of 8.7% for the quarter.

GWW’s Q4 Operational Update

The cost of sales climbed 5.1% year over year to $2.56 billion. The gross profit rose 7.2% year over year to $1.68 billion. The gross margin came in at 39.6% in the quarter compared with the prior-year period’s 39.1%.

Selling, general and administrative expenses rose 3.7% year over year to $1.04 billion. Grainger’s operating income in the quarter was up 19% year over year to $663 million. The operating margin came in at 15% compared with 13.9% in the prior-year quarter.

Grainger’s Q4 Cash Flow & Balance Sheet Updates

The company had cash and cash equivalents of $1.04 billion at the end of 2024, up from $0.67 billion at 2023-end. Cash flow from operating activities was $2.11 billion in 2024 compared with $2.03 billion last year.

The long-term debt was $2.28 billion as of Dec. 31, 2024, compared with $2.27 million as of Dec. 31, 2023. Grainger returned $1.6 billion to shareholders via dividends and share buybacks through 2024. The capital expenditure for the year was $541 million, higher than $445 million in 2023.

GWW’s 2024 Performance

Adjusted EPS rose 23.6% year over year to $38.96 in 2024, which beat the Zacks Consensus Estimate of $38.95. Including one-time items, earnings were $38.71 compared with $36.23 in 2023. The figure came in line with the company’s expected EPS of $38.65-$39.35. 

Sales improved 4.2% year over year to $17.17 billion and came within the company’s guidance of $17.1-$17.3 billion. The top line met the Zacks Consensus Estimate. Sales rose 4.7% on a daily, on a constant-currency basis.

Grainger’s 2025 Outlook

The company expects net sales between $17.6 billion and $18.1 billion. Sales growth is expected to be 2.7-5.2%. Daily sales growth is envisioned at 4-6.5%. Earnings per share are expected to be $39.00-$41.50.

GWW Stock’s Price Performance

In the past year, GWW shares have gained 23% compared with the industry’s 5.9% growth.

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Grainger’s Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GWW’s Peer Performances

MSC Industrial Direct Company, Inc. MSM reported first-quarter fiscal 2025 (ended on Nov. 30, 2024) adjusted earnings per share of 86 cents, beating the Zacks Consensus Estimate of 73 cents.

The bottom line marked a 31% plunge from earnings of $1.25 in the year-ago quarter. The downfall was attributed to lower sales, higher operating expenses and elevated interest expenses.

MSM generated sales  of $928.5 million in the quarter under review, down 2.7% from the year-ago quarter. Revenues were impacted by weak demand, unfavorable foreign exchange impacts and negative impacts of pricing. The top line, however, surpassed the Zacks Consensus Estimate of $905 million.

Industrial Services Stocks Awaiting Results

Hillenbrand, Inc. HI is set to release its first-quarter fiscal 2025 results on Feb. 5.

The Zacks Consensus Estimate for HI’s EPS for the fiscal first quarter is pegged at 54 cents, suggesting a decline of 21.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $695 million, indicating a year-over-year decrease of 10%.

SiteOne Landscape Supply, Inc. SITE is set to release its fourth-quarter 2024 results on Feb. 12.

The Zacks Consensus Estimate for SITE’s loss per share is pegged at 28 cents for the fourth quarter. The company incurred a loss of 8 cents in the year-ago quarter. The Zacks Consensus Estimate for total revenues is pinned at $1.01 billion, indicating a year-over-year increase of 4.3%.

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