NYSE$MSM

MSC Industrial Direct Co. Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

MSC Industrial Supply Co. reported first quarter fiscal 2023 results, with strong sales growth and operating margin expansion.

MSC Industrial Supply Co. reported a strong start to fiscal 2023, with net sales increasing by 12.9% year-over-year to $957.7 million. The company's diluted EPS was $1.45, compared to $1.18 in the prior year quarter. The company reaffirmed its fiscal 2023 adjusted operating margin guidance range.

  • Net sales increased by 12.9% year-over-year to $957.7 million.
  • Average daily sales growth was roughly 9 percentage points above the Industrial Production Index.
  • Diluted EPS was $1.45, compared to $1.18 in the prior fiscal year quarter.
  • The company reaffirms its fiscal 2023 adjusted operating margin guidance range.

Headline financials

Total Revenue

$958M

Previous: $849M+12.9%
EPS (adj)

$1.48

Previous: $1.25+18.4%
Capital Expenditures

-$25.5M

Previous: -$15.3M-67.1%
Free Cash Flow

$55.8M

Previous: $50.8M+9.9%
Net Income

$81.3M

Previous: $66.1M+23.1%
Operating Income

$116M

Previous: $90.7M+27.9%
Gross Profit

$398M

Previous: $353M+12.8%
Cash & Equivalents

$26.3M

Previous: $62.9M-58.1%
Total Assets

$2.75B

Previous: $2.5B+10.1%
Stock-Based Comp

$4.99M

Previous: $5.69M-12.3%

Revenue & EPS history

MSC · Revenue · Quarterly

$958M

Q1 2023+12.9%vs Q1 2022
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The Company is reaffirming its fiscal 2023 full year adjusted operating margin and ADS outlook that was communicated last quarter and providing key assumptions for the year.

Tailwinds

  • Adjusted Operating Margin 12.7%-13.3%
  • ADS Growth (YoY) 5.0%-9.0%
  • Gross Margins 40-70 bps YoY contraction
  • Depreciation and Amortization Expense $77M-$82M
  • Operating Cash Flow Conversion >100%

Headwinds

  • Fiscal 2023 includes 6 fewer selling days than fiscal 2022
  • Acquisitions expected to dilute gross margins by 30 to 40 bps
  • Acquisitions expected to dilute operating margins by ~20 bps
  • Low end of ADS range assumes contracting industrial economy; high end assumes a flat industrial economy
  • Adjusted operating expense as a percentage of sales expected to improve in the back half of the 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 2023

Historical avgQ1 2023

-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%

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