Free Post Earnings Research Report: W.W. Grainger’s Sales Jumped 7%; Adjusted EPS Surged 20%

Stock Monitor: Fastenal Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 30, 2018 / Active-Investors.com has just released a free earnings report on W.W. Grainger, Inc. (NYSE: GWW) (“Grainger”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GWW. W.W. Grainger reported its fourth quarter and fiscal 2017 operating and financial results on January 24, 2018. The seller of maintenance and other supplies outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Fastenal Company (NASDAQ: FAST), which also belongs to the Services sector as the Company W.W. Grainger. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, W.W. Grainger most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=GWW

Earnings Highlights and Summary

Grainger’s sales for the fourth quarter of 2017 totaled $2.63 billion, were up 7% versus sales of Q4 2016 of $2.47 billion. The Company’s sales growth consisted of an 11% increase from volume, partially offset by a 3% decline from price and a 1% decline from the divesture of a specialty business. Grainger’s sales exceeded analysts’ estimates of $2.57 billion of sales.

For FY17, Grainger’s sales totaled $10.42 billion compared to sales of $10.14 billion in FY16.

During Q4 2017, Grainger’s operating earnings of $239.94 million surged 38% compared to operating earnings of $174.23 million in Q4 2016, driven by higher sales and gross profit dollars along with lower restructuring costs and other charges versus the prior year. Grainger’s gross profit margin for the reported quarter decreased 1.3%, primarily driven by price deflation in the United States.

During Q4 2017, the Company reported net income attributable to Grainger of $151.06 million, or $2.63 per diluted share, compared to $60.67 million, or $1.01 per diluted share, in Q4 2016. On an adjusted basis, the Company’s earnings advanced 20% to $2.94 per diluted share versus $2.45 per share in the year ago same period. Grainger’s earnings surpassed Wall Street’s estimates of $2.18 per share.

For FY17, Grainger reported net earnings of $585.73 million, or $10.02 per diluted share, compared to earnings of $605.93 million, or $9.87 per diluted share, in FY16.

W.W. Grainger’s Segment Results

Grainger has two reportable business segments: United States and Canada, which represented approximately 79% of the Company’s sales for the reported quarter. The remaining operating businesses were located in Europe, Asia, and Latin America.

During Q4 2017, Grainger’s sales in the US segment grew 5% to $1.99 billion on a y-o-y basis. The segment’s sales increase consisted of a volume increase of 11%, partially offset by 5% from price and a 1% decline from the divesture of a specialty business. The US segment operating earnings advanced 16% to $290.52 million on a y-o-y basis, driven by higher sales and lower restructuring charges.

For Q4 2017, Grainger’s sales in the Canada segment gained 5% in US dollars to $189.43 million on a y-o-y basis. The segment’s sales growth consisted of 5% from favorable foreign exchange and a 4% increase from price, partially offset by a 4% decrease from volume. The Canada segment operating loss was $17 million in the reported quarter versus a $10 million loss in the year ago same period, driven by higher operating expenses.

Cash Flow

Grainger’s operating cash flow for Q4 2017 was $336 million versus $335 million in Q4 2016. The Company used the cash generated during the reported quarter to invest in the business, pay down debt and return cash to shareholders through share repurchase and dividends.

Grainger’s capital expenditures were $46 million in Q4 2017 versus $71 million in Q4 2016. In the reported quarter, the Company returned $248 million to shareholders through $79 million in dividends and $169 million to buy back 855,000 shares of stock. Grainger’s free cash flow was $299 million for Q4 2017 versus $271 million in Q4 2016.

Stock Performance Snapshot

January 29, 2018 – At Monday’s closing bell, W.W. Grainger’s stock dropped 3.78%, ending the trading session at $274.48.

Volume traded for the day: 1.55 million shares, which was above the 3-month average volume of 1.00 million shares.

Stock performance in the last month – up 15.81%; previous three-month period – up 36.44%; past twelve-month period – up 7.06%; and year-to-date – up 16.18%

After yesterday’s close, W.W. Grainger’s market cap was at $15.71 billion.

Price to Earnings (P/E) ratio was at 31.59.

The stock has a dividend yield of 1.87%.

The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry.

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