NYSE$MSM

MSC Industrial Direct Co. Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

MSC Industrial Supply Co. reported third quarter results, achieving double-digit average daily sales growth and expanding adjusted operating margin.

MSC Industrial Supply Co. reported a 10.7% increase in net sales, reaching $958.6 million. The company's diluted EPS increased to $1.78, and adjusted diluted EPS rose to $1.82. They expect double-digit average daily sales growth to continue in fiscal Q4.

  • Net sales increased by 10.7% year-over-year, reaching $958.6 million.
  • Gross margin improved to 42.9% compared to 42.3% in the prior year quarter.
  • Operating margin was strong at 14.3%, or 14.6% excluding certain costs.
  • Diluted EPS increased by 6.0% to $1.78, and adjusted diluted EPS increased by 28.2% to $1.82.

Headline financials

Total Revenue

$959M

Previous: $866M+10.7%
EPS (adj)

$1.82

Previous: $1.42+28.2%
Capital Expenditures

-$44.9M

Previous: -$37.6M-19.5%
Free Cash Flow

$54.7M

Previous: $56.8M-3.7%
Net Income

$99.7M

Previous: $94.4M+5.5%
Operating Income

$137M

Previous: $129M+6.4%
Gross Profit

$411M

Previous: $366M+12.2%
Cash & Equivalents

$28.8M

Previous: $27.4M+5.2%
Total Assets

$2.62B

Previous: $2.42B+8.0%
Stock-Based Comp

$4.37M

Previous: $4.41M-1.0%

Revenue & EPS history

MSC · Revenue · Quarterly

$959M

Q3 2022+10.7%vs Q3 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company anticipates continued double-digit average daily sales growth into fiscal Q4 and expects to finish the year in the top scenario of their fiscal 2022 annual framework.

Tailwinds

  • Company expects double digit average daily sales growth to continue in fiscal Q4
  • Achieved double-digit average daily sales growth, roughly 500 basis points above the Industrial Production (“IP”) index
  • Grew gross margins sequentially and year over year thanks to strong price realization in an inflationary environment
  • Translated top line growth into significant operating leverage
  • Adjusted operating margin expansion

Headwinds

  • Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated
  • General economic conditions in the markets may impact business
  • Volatility in commodity and energy prices may have adverse effect
  • Competition, including the adoption by competitors of aggressive pricing strategies and sales methods
  • Risk of loss of key suppliers or contractors or key brands or supply chain disruptions, including due to import restrictions resulting from the COVID-19 pandemic or global geopolitical conditions

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 Q3 2022

Historical avgQ3 2022

-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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