NYSE$GWW

WW Grainger Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported sales of $3.4 billion, up 11.7%, and EPS of $5.65, growth of 25% versus the third quarter of 2020.

Grainger reported strong third quarter 2021 results, driven by strong performance in both the High-Touch Solutions N.A. and Endless Assortment segments, with sales of $3.4 billion, up 11.7% compared to the third quarter of 2020.

  • Delivered sales of $3.4 billion, up 11.7%, compared to the third quarter of 2020; up 11.9% on an organic, daily, constant currency basis
  • Expanded gross margin by 145 bps compared to the third quarter of 2020, expanded by 205 bps sequentially
  • Operating earnings of $438 million, up 17.4%, resulting in EPS of $5.65, growth of 25% versus the third quarter of 2020
  • Returned $327 million to shareholders through dividends and share repurchases

Headline financials

Total Revenue

$3.37B

Previous: $3.02B+11.7%
EPS (adj)

$5.65

Previous: $4.52+25.0%
Operating margin

13.0%

Previous: 12.6%+3.2%
Effective tax rate

25.5%

Previous: 29.3%-13.0%
Capital Expenditures

-$197M

Previous: -$152M-29.6%
Free Cash Flow

$100M

Previous: $88M+13.6%
Net Income

$297M

Previous: $240M+23.8%
Operating Income

$438M

Previous: $380M+15.3%
Gross Profit

$1.25B

Previous: $1.07B+16.4%
Cash & Equivalents

$328M

Previous: $859M-61.8%
Total Assets

$6.39B

Previous: $6.58B-2.9%
Stock-Based Comp

$8M

Previous: $10M-20.0%

Revenue & EPS history

Grainger · Revenue · Quarterly

$3.37B

Q3 2021+11.7%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company is reaffirming the guidance ranges previously provided for 2021. Given the solid results of the third quarter, the company expects revenue to finish the year near the midpoint and expects all other metrics to fall between the low end and the midpoint of the range.

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 Q3 2021

Historical avgQ3 2021

+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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