NYSE$GWW

WW Grainger Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Grainger's Q4 2022 earnings were marked by strong sales growth and improved profitability, driven by strategic initiatives.

Grainger reported strong Q4 2022 results with sales of $3.8 billion, a 13.2% increase, and diluted EPS of $7.54, up 38.6%. The company's performance was driven by focused execution of its long-term strategy and strong demand in both High-Touch Solutions and Endless Assortment segments.

  • Sales increased by 13.2% to $3.8 billion, or 17.2% on a daily, constant currency basis.
  • Operating margin was 14.3%, up 190 basis points, or 13.8% on an adjusted basis, up 135 basis points.
  • Diluted EPS reached $7.54, up 38.6%, or $7.14 on an adjusted basis, up 31.3%.
  • The company issued 2023 guidance, including 7% to 11% sales growth.

Headline financials

Total Revenue

$3.8B

Previous: $3.36B+13.2%
EPS (adj)

$7.14

Previous: $5.44+31.2%
Capital Expenditures

$48M

Previous: $58M-17.2%
Free Cash Flow

$312M

Previous: $155M+101.3%
Net Income

$384M

Previous: $283M+35.7%
Operating Income

$544M

Previous: $417M+30.5%
Gross Profit

$1.51B

Previous: $1.25B+20.2%
Cash & Equivalents

$325M

Previous: $241M+34.9%
Total Assets

$7.59B

Previous: $6.59B+15.1%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

Grainger · Revenue · Quarterly

$3.8B

Q4 2022+13.2%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The Company is providing the following outlook for 2023: Total Company(1)2023 Guidance RangeNet Sales$16.2 - $16.8 billionSales growth6.6% - 10.6%Daily sales growth7.0% - 11.0%Gross Profit Margin38.1% - 38.3%Operating Margin14.4% - 14.9%Diluted Earnings per Share$32.00 - $34.50Operating Cash Flow$1.45 - $1.65 billionCapEx (cash basis)$450 - $525 millionShare Buyback$550 - $700 millionTax Rate~25.0%Segment Operating MarginHigh-Touch Solutions N.A.16.3% - 16.8%Endless Assortment8.6% - 9.0% Total Company(1) (1)Guidance provided is on an adjusted basis. Daily sales growth adjusted for the impact of one less selling day in 2023 as compared to 2022. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release.

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 2022

Historical avgQ4 2022

+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