W.W. Grainger, Inc. (GWW) is a leading North American distributor of material-handling equipment, safety and security supplies. The company remains focused on providing the lowest total cost maintenance, repair and operating (MRO) solution to select customer groups.
Grainger will benefit from expansion of its product offerings and sales through continuous investment in e-commerce and grow through acquisitions. However, Grainger’s business in Canada continues to face a sluggish macroeconomic environment and unfavorable currency exchange. Moreover, the recent plunge in oil prices will weigh on the segment’s results.
Let’s have a quick look on Grainger’s fourth-quarter release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Grainger for the fourth quarter has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at $2.83 over these periods.
Coming to the earnings surprise, Grainger has beaten the Zacks Consensus Estimate in two of the last four quarters, making for an average surprise of just around 0.5%.
Earnings
Grainger missed on earnings. The Zacks Consensus Estimate called for EPS of $2.83 a share, while the company reported $2.80 per share. Investors should note that these figures take out special items.
Revenue
Grainger beats on revenues. Grainger posted revenues of $2.51 billion, beating the Zacks Consensus Estimate for revenues of $2.50 billion.
Key Stats/Developments to Note
Grainger updated its 2015 guidance and now expects sales growth of 3% to 7% and earnings per share in the range of $12.60 to $13.60, which reflects the foreign currency translation effect due to the further weakening of the Canadian and Japanese currencies as well as the weakening macroeconomic backdrop in Canada.
Zacks Rank
Currently, Grainger has a Zacks Rank #3 (Hold), but that could change following Grainger’s earnings report which was just released.
Market Reaction
Grainger’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Grainger’s earnings report later!
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