NYSE$GWW

WW Grainger Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Grainger delivered robust top-line growth and maintained a strong balance sheet in Q1 2020.

Grainger reported a 7.2% increase in sales to $3.0 billion for Q1 2020. The company generated $159 million in reported operating earnings and $343 million in adjusted operating earnings. Operating cash flow was $244 million, and $178 million was returned to shareholders through dividends and share repurchases. Due to uncertainties surrounding the COVID-19 pandemic, Grainger suspended its 2020 guidance and paused share repurchases.

  • Sales increased by 7.2% to $3.0 billion, or 5.5% on a daily basis.
  • Reported operating earnings were $159 million, with adjusted operating earnings at $343 million.
  • Operating cash flow reached $244 million, and $178 million was returned to shareholders.
  • Company suspended 2020 guidance and paused share repurchases due to COVID-19 uncertainties.

Headline financials

Total Revenue

$3B

Previous: $2.8B+7.2%
EPS (adj)

$4.24

Previous: $4.51-6.0%
Gross profit margin

37.4%

Previous: 39.1%-4.3%
Operating margin

5.3%

Previous: 13.0%-59.2%
Effective tax rate

-30.4%

Previous: 25.4%-219.7%
Daily sales growth

5.5%

No prior period
Capital Expenditures

-$50M

Previous: $60M-183.3%
Free Cash Flow

$123M

Previous: $67M+83.6%
Net Income

$173M

Previous: $253M-31.6%
Operating Income

$159M

Previous: $363M-56.2%
Gross Profit

$1.12B

Previous: $1.1B+2.4%
Cash & Equivalents

$1.49B

Previous: $392M+280.6%
Total Assets

$7.18B

Previous: $6.01B+19.3%
Stock-Based Comp

$9M

Previous: $5M+80.0%

Revenue & EPS history

Grainger · Revenue · Quarterly

$3B

Q1 2020+7.2%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Given the uncertainty around the depth and duration of this pandemic, and the related economic response, Grainger is suspending their guidance for 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.8%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+24.8%

Q4 2017

Best reaction

-12.4%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+6.9%+11.2%
Q4 2025+5.1%+9.3%+4.5%
Q3 2025+1.0%+0.6%-0.8%
Q2 2025-10.3%-7.6%-2.5%
Q1 2025+2.8%+1.7%+6.2%
Q4 2024-5.6%-7.4%-9.3%
Q3 2024+0.5%+2.1%+9.6%
Q2 2024-2.5%-2.5%+0.8%
Q1 2024-3.0%-3.9%+0.8%
Q4 2023+2.5%+2.4%+6.3%
Q3 2023+4.3%+7.7%+19.9%
Q2 2023-4.0%-4.8%-6.2%
Q1 2023+5.4%+4.4%+0.7%
Q4 2022+13.0%+13.4%+16.6%
Q3 2022+8.7%+8.6%+12.4%
Q2 2022+9.5%+8.2%+12.8%
Q1 2022+0.9%-2.4%-1.1%
Q4 2021-2.7%-3.8%-2.6%
Q3 2021+8.6%+10.1%+13.6%
Q2 2021-4.6%-4.7%-6.3%
Q1 2021+3.3%+7.1%+7.5%
Q4 2020-0.3%+1.5%+7.0%
Q3 2020-3.3%-4.2%+9.6%
Q2 2020+0.7%-1.6%+4.0%
Q1 2020-2.4%+3.6%+6.1%
Q4 2019-7.6%-5.9%-15.3%
Q3 2019-1.2%-0.9%-0.1%
Q2 2019+7.7%+4.6%-4.6%
Q1 2019-4.9%-5.3%-15.9%
Q4 2018-1.8%-0.3%+5.1%
Q3 2018-12.2%-13.1%-3.7%
Q2 2018+12.0%+12.4%+17.3%
Q1 2018+1.3%-1.8%+8.1%
Q4 2017+24.8%+19.6%+16.0%
Q3 2017+14.5%+14.0%+8.9%
Q2 2017-4.9%-4.4%-7.5%
Q1 2017-12.4%-12.5%-22.3%
Q4 2016+2.9%+2.2%+0.5%
Q3 2016-4.5%-5.0%+2.6%
Q2 2016-5.2%-4.8%+1.1%
Q1 2016-2.0%
Q4 2015-0.2%
Q3 2015-8.9%
Q2 2015+1.2%
Q1 2015-1.0%
Q4 2014-5.8%
Q3 2014-3.0%
Q2 2014-0.8%
Q1 2014+0.6%
Q4 2013-6.9%
Q3 2013+2.5%
Q2 2013+0.2%
Q1 2013+5.5%
Q4 2012+3.5%
Q3 2012-3.1%
Q2 2012+8.9%
Q1 2012+0.5%
Q4 2011-1.2%
Q3 2011+2.5%
Q2 2011-0.3%
Q1 2011+0.9%
Q4 2010+0.2%
Q3 2010+2.1%
Q2 2010+1.1%
Q1 2009+1.9%
Q1 2010+0.2%
Q4 2007-1.8%
Q4 2009-1.8%
Q3 2008+0.6%
Q3 2009+0.6%
Q4 2008+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

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