NYSE$GWW

WW Grainger Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Grainger's Q4 2020 earnings reflected solid top-line growth driven by share gains in the U.S. segment and continued growth in the endless assortment businesses.

Grainger reported a 3.3% increase in sales for Q4 2020, reaching $2.9 billion. Reported operating earnings increased by 52% to $275 million, while adjusted operating earnings decreased by 4% to $295 million. The company's performance was driven by share gains in the U.S. segment and strong growth in the endless assortment businesses.

  • Sales increased by 3.3% to $2.9 billion, and 5.6% on an organic, daily, constant currency basis.
  • Reported operating earnings increased 52% to $275 million; adjusted operating earnings decreased 4% to $295 million.
  • Reported operating margin of 9.4% increased 300 basis points; adjusted operating margin of 10.0% decreased 75 basis points.
  • Operating cash flow increased 24% to $336 million due to the timing of inventory purchases.

Headline financials

Total Revenue

$2.94B

Previous: $2.85B+3.3%
EPS (adj)

$3.66

Previous: $3.88-5.7%
Gross profit margin

34.9%

No prior period
Capital Expenditures

$45M

Previous: $58M-22.4%
Free Cash Flow

$291M

Previous: $214M+36.0%
Net Income

$185M

Previous: $103M+79.6%
Operating Income

$275M

Previous: $181M+51.9%
Gross Profit

$1.03B

Previous: $1.08B-5.1%
Cash & Equivalents

$585M

Previous: $360M+62.5%
Total Assets

$6.3B

Previous: $6.01B+4.8%
Stock-Based Comp

$10M

Previous: $8M+25.0%

Revenue & EPS history

Grainger · Revenue · Quarterly

$2.94B

Q4 2020+3.3%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Given the continued uncertainty surrounding the pandemic and subsequent path of economic recovery, the company will not be providing 2021 guidance at this time.

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 Q4 2020

Historical avgQ4 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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