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 -3.10% change in stock price 10 days leading up to the earnings, and a +1.23% change 10 days following the report. On the earnings day itself, the stock moves by +2.00%. 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
4.23B
5.90%
-3.53%
Gross Margin
39.59%
1.25%
0.99%
Operating Margin
14.95%
2.47%
-4.35%
Net Margin
11.74%
13.87%
2.00%
EPS
9.77
22.43%
-1.71%
No Data Available
GWW Earnings Analysis
WW Grainger Inc Corporation (GWW.N) Earnings Conference Call
Positive
Sales Growth 2024: Sales for the full year 2024 reached over $17.2 billion, representing a 4.2% increase on a reported basis and a 4.7% increase on a daily organic constant currency basis.
Adjusted EPS Increase: Adjusted EPS for the year increased by over 6% to $38.96 per share, reflecting strong earnings performance despite a challenging demand environment.
Shareholder Returns Boosted: Operating cash flow exceeded $2.1 billion, enabling the company to return $1.6 billion to shareholders through dividends and share repurchases.
Hi Touch Solutions Profit Margin: The Hi Touch Solutions segment achieved a gross profit margin of 42.3% for Q4, up 90 basis points year-over-year, driven by solid volume growth and improved pricing contributions.
Enterprise Customer Growth: Monotaro reported a 29% growth with enterprise customers, demonstrating strong retention rates and deepening share of wallet with core B2B customers.
Negative
Sluggish Sales Growth: Demand environment remains sluggish throughout 2024, with total sales of $17.2 billion, reflecting only a 4.2% increase, which is below expectations for a more robust growth.
Operating Margin Projections: Despite a reported operating margin of 15.5% for the year, the company anticipates a contraction in operating margins for 2025, projected to be between 15.1% and 15.5%, indicating potential challenges in maintaining profitability.
Price Increase Challenges: The Hi Touch Solutions segment experienced a mathematical share loss from price of approximately 225 basis points, highlighting difficulties in passing on price increases amid inflationary pressures in the market.
Pricing Inflation Impact: The company expects minimal pricing inflation for 2025, which may hinder revenue growth and margin expansion, as it does not align with the anticipated inflationary trends in the broader market.
Projected Cash Flow Decline: Operating cash flow is projected to be lower in Q1 2025 due to a slower start in sales and one fewer selling day, which is expected to impact overall profitability negatively.
GWW FAQs
How does GWW typically perform around its earnings report dates?
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GWW Earning Call Sentiment
Earnings call transcript: Grainger Q4 2024 misses EPS, stock drops
GWW.N
1.19%Positive
The earnings call summary shows strong financial performance with record-high revenue, improved margins, and solid shareholder returns. The Q&A section reveals management's confidence in AI and organic growth strategies, despite some ambiguity around tariffs. The positive guidance and significant share repurchase plan further support a positive outlook. The absence of concerning trends or negative guidance adjustments suggests a likely stock price increase over the next two weeks.
