GWW Earnings Prediction
The chart below shows how GWW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GWW sees a -3.95% change in stock price 10 days leading up to the earnings, and a +1.73% change 10 days following the report. On the earnings day itself, the stock moves by +2.85%. This data can give you a slight idea of what to expect for the next quarter's release.
GWW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.39B
4.28%
1.76%
Gross Margin
39.20%
-0.33%
-0.23%
Operating Margin
15.63%
-1.39%
3.85%
Net Margin
11.51%
-1.79%
1.32%
EPS
9.94
4.63%
4.08%
No Data Available
GWW Earnings Analysis
W.W. Grainger, Inc. Corporation (GWW.N) Earnings Conference Call
Positive
Sales Performance Improvement: Total company reported sales for the quarter were up 4.3% or 4% on a daily organic constant-currency basis, indicating strong sales performance despite a challenging demand environment.
Effective Cash Management: Operating cash flow came in at $611 million in the quarter, allowing the company to return a total of $328 million to shareholders through dividends and share repurchases, showcasing effective cash management.
Endless Assortment Sales Growth: The Endless Assortment segment saw sales increase by 8.1% or 11.5% on a daily constant-currency basis, driven by strong growth in both Zoro U.S. and MonotaRO, reflecting successful customer engagement strategies.
Operating Margin Improvement: Operating margins for the Endless Assortment segment increased by 130 basis points to 8.8%, with MonotaRO margins remaining strong at 12.4%, highlighting improved operational efficiency.
Diluted EPS Increase: Diluted EPS for the quarter was $9.87, up 4.7% from the prior year, reflecting higher sales and a lower share count, demonstrating strong profitability growth.
Negative
Operating Margin Decline: 1. Declining Operating Margins: Total company operating margins decreased by 30 basis points in Q3 2024, reflecting slight deleverage in the High-Touch Solutions segment.
Rising SG&A Costs: 2. Increased SG&A Costs: SG&A costs in the High-Touch Solutions segment rose, leading to a 30 basis point SG&A deleverage due to investments in demand generation amidst a softer topline.
Volume Growth Disappointment: 3. Volume Outgrowth Shortfall: Year-to-date volume outgrowth is approximately 350 basis points, falling short of the targeted 400 to 500 basis points, indicating weaker performance than expected.
Soft Market Demand: 4. Muted Demand Environment: The overall demand environment remains soft, with the company acknowledging that the market has been sluggish, impacting growth expectations.
Hurricane Sales Adjustment: 5. Hurricane-Related Sales Impact: The preliminary daily organic constant currency sales growth rate for October is closer to 4% to 4.5% when excluding the estimated 200 to 250 basis points of hurricane-related sales.
GWW FAQs
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GWW Earning Call Sentiment
W.W. Grainger, Inc. (GWW) Q3 2024 Earnings Call Transcript
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GWW.N
0.97%Positive
The earnings call summary shows stable financial performance with 4.3% sales growth and increased EPS. However, operating margins declined, and foreign exchange risks are present. The Q&A section highlights macroeconomic challenges and uncertainties, but also notes strong growth in the Endless Assortment segment. The company's decision to maintain guidance and focus on shareholder returns is positive, but the lack of clarity on competitive threats, such as Amazon, adds uncertainty. Overall, the mixed signals from financial performance and external risks suggest a neutral stock price movement.