NYSE$MSM

MSC Industrial Direct Co. Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

MSC's first quarter of fiscal year 2021 experienced a sales decrease but showed building momentum through strategic initiatives.

MSC Industrial Supply Co. reported a decrease in net sales by 6.3% year-over-year, with a net sales of $771.9 million. Diluted EPS was reported at $0.69, with an adjusted diluted EPS of $1.10. The company saw sequential improvement in sales of non-safety and non-janitorial product lines, while sales of safety and janitorial products grew roughly 20%.

  • Net sales decreased by 6.3% year-over-year, totaling $771.9 million.
  • Operating income was $53.9 million, or $84.6 million excluding certain charges.
  • Diluted EPS was $0.69, while adjusted diluted EPS was $1.10.
  • The company declared a special cash dividend of $3.50 per share on November 17, 2020.

Headline financials

Total Revenue

$772M

Previous: $824M-6.3%
EPS (adj)

$1.10

Previous: $1.21-9.1%
Capital Expenditures

-$7.89M

Previous: -$12.7M+37.8%
Free Cash Flow

$30.6M

No prior period
Net Income

$38.5M

Previous: $65.5M-41.2%
Operating Income

$53.9M

Previous: $90.3M-40.3%
Gross Profit

$323M

Previous: $347M-6.9%
Cash & Equivalents

$53.1M

No prior period
Total Assets

$2.29B

No prior period
Stock-Based Comp

$4.24M

Previous: $4.16M+1.9%

Revenue & EPS history

MSC · Revenue · Quarterly

$772M

Q1 2021-6.3%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

MSC Industrial Supply is aiming for significant growth and improved profitability by the end of fiscal year 2023, focusing on outpacing the Industrial Production Index and enhancing operating efficiency.

Tailwinds

  • Targeting growth of at least 400 basis points above the Industrial Production Index by the end of fiscal 2023.
  • Aiming to return ROIC back into the high teens by the end of fiscal 2023.
  • Executing significant structural cost reductions to improve operating expenses.
  • Expecting operating expenses as a percent of sales to improve by at least 200 basis points.
  • Momentum is building inside of the company, evidenced by improving operating numbers and an increasing pace of business.

Headwinds

  • Uncertainty over securing deliveries of nitrile gloves for which the company prepaid.
  • A challenging but improving environment.
  • The reported operating margin was significantly impacted by a $26.7 million asset impairment charge.
  • Overall net sales decreased by 6.3% year-over-year.
  • Diluted EPS decreased from $1.18 to $0.69 year-over-year.

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.9%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+2.5%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+8.1%

Q1 2017

Best reaction

-17.1%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.8%+6.7%
Q1 2026-4.4%-1.6%+12.5%
Q4 2025+3.0%-3.1%+1.2%
Q3 2025-1.9%-3.0%-2.9%
Q2 2025-5.2%-11.5%-2.1%
Q1 2025+0.1%+3.4%+0.5%
Q4 2024-2.7%+2.0%+5.7%
Q3 2024+0.4%-1.1%+7.8%
Q2 2024-3.6%-4.9%-6.3%
Q1 2024-1.9%+0.4%+2.9%
Q4 2023-1.9%-1.7%+3.8%
Q3 2023-0.7%-0.2%+4.1%
Q2 2023+0.2%+0.1%+6.2%
Q1 2023-3.9%-1.9%+9.0%
Q4 2022+1.9%+3.5%+9.9%
Q3 2022+2.1%+1.5%+12.4%
Q2 2022+3.1%+2.0%+0.3%
Q1 2022-0.0%+0.6%-1.6%
Q4 2021-4.1%-4.1%-2.4%
Q3 2021-1.0%-0.4%-5.4%
Q2 2021-1.8%-2.5%+2.2%
Q1 2021+2.7%+0.5%+4.0%
Q4 2020+1.3%+5.1%+28.8%
Q3 2020-12.9%-12.0%-6.4%
Q2 2020+3.7%-1.7%+4.3%
Q1 2020-1.2%+0.9%-7.5%
Q4 2019+1.3%-0.2%-0.3%
Q3 2019-1.6%-0.2%-5.9%
Q2 2019-3.1%-2.0%-8.1%
Q1 2019+0.9%+1.9%+5.1%
Q4 2018+5.9%+9.6%+14.3%
Q3 2018-4.2%-3.7%+0.3%
Q2 2018-3.9%-3.1%+0.2%
Q1 2018-2.6%-3.0%-8.7%
Q4 2017+1.6%+3.1%+13.3%
Q3 2017-17.1%-14.6%-19.9%
Q2 2017-7.0%-8.5%-12.7%
Q1 2017+8.1%+7.2%+13.3%
Q4 2016-1.2%+1.0%+23.4%
Q3 2016+4.3%+2.6%+2.9%
Q2 2016-0.5%
Q1 2016+6.7%
Q4 2015+3.3%
Q3 2015+4.1%
Q2 2015-1.3%
Q1 2015-5.1%
Q4 2014-5.4%
Q3 2014-5.3%
Q2 2014+2.0%
Q1 2014+4.0%
Q4 2013-8.4%
Q3 2013-0.2%
Q2 2013-5.3%
Q1 2013-1.3%
Q4 2012+4.1%
Q3 2012+5.0%
Q2 2012-3.2%
Q1 2012-0.2%
Q2 2011+4.2%
Q4 2009+4.2%
Q4 2011+4.2%
Q3 2010+1.8%
Q3 2011+1.8%
Q2 2010-4.2%
Q1 2010-7.0%
Q1 2011-7.0%
Q4 2010-7.0%

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