NYSE$GWW

WW Grainger Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered strong results driven by focused execution, and raised the midpoint of full year 2023 guidance.

Grainger reported strong second-quarter results with sales of $4.2 billion, up 9.0%, and diluted EPS of $9.28, up 29.1% compared to the second quarter of 2022. The company raised the midpoint of its full-year revenue and EPS guidance ranges, expecting continued strong execution in the back half of 2023.

  • Sales reached $4.2 billion, a 9.0% increase, or 10.1% on a daily, constant currency basis.
  • Operating earnings increased by 23.5% to $661 million, with an operating margin of 15.8%, up 190-basis points.
  • Diluted EPS increased by 29.1% to $9.28.
  • Operating cash flow was $450 million, and $265 million was returned to shareholders through dividends and share repurchases.

Headline financials

Total Revenue

$4.18B

Previous: $3.84B+9.0%
EPS (adj)

$9.28

Previous: $7.19+29.1%
Gross profit margin

39.3%

Previous: 37.6%+4.5%
Operating margin

15.8%

Previous: 13.9%+13.7%
Capital Expenditures

-$193M

Previous: -$163M-18.4%
Free Cash Flow

$277M

Previous: $208M+33.2%
Net Income

$470M

Previous: $371M+26.7%
Operating Income

$661M

Previous: $534M+23.8%
Gross Profit

$1.64B

Previous: $1.44B+14.1%
Cash & Equivalents

$515M

Previous: $262M+96.6%
Total Assets

$8.03B

Previous: $7.05B+13.9%
Stock-Based Comp

$19M

Previous: $18M+5.6%

Revenue & EPS history

Grainger · Revenue · Quarterly

$4.18B

Q2 2023+9%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Grainger is raising the midpoint of its full year 2023 total Company revenue and EPS guidance ranges.

Tailwinds

  • Daily sales growth of 8.5% to 11%.
  • Diluted EPS of $35.00 to $36.75 per share.
  • Operating Cash Flow $1.70 - $1.85 billion
  • Share Buyback $750 - $850 million
  • High-Touch Solutions - N.A. Segment Operating Margin 17.3% - 17.8%

Headwinds

  • Endless Assortment Segment Operating Margin 7.4% - 7.8%
  • CapEx (cash basis) $450 - $525 million
  • Net Sales $16.4 - $16.8 billion
  • Gross Profit Margin 39.1% - 39.4%
  • Operating Margin 15.2% - 15.7%

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 Q2 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro