Here's What to Expect From W.W. Grainger's Next Earnings Report

Barchart · 10/17 05:55

W.W. Grainger, Inc. (GWW), headquartered in Lake Forest, Illinois, is a broad-line distributor of maintenance, repair, and operating (MRO) products. With a market cap of $54.6 billion, Grainger provides innovative supply chain solutions to businesses and institutions across various industries in the U.S. and internationally. The company is scheduled to announce its Q3 earnings before the market opens on Thursday, Oct. 31.

Ahead of the event, analysts expect GWW to report a profit of $9.98 per share, up 5.8% from $9.43 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in the last four quarters.

W.W. Grainger's adjusted earnings of $9.76 per share for the last quarter surpassed the consensus estimate by 1.9%. Robust demand in its High-Touch Solutions N.A. and Endless Assortment segments drove W.W. Grainger's Q2 EPS beat estimates.

For fiscal 2024, analysts expect GWW to report EPS of $38.69, up 5.5% from $36.67 in fiscal 2023.

GWW stock is up 34.3% YTD, significantly outperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the Industrial Select Sector SPDR Fund’s (XLI) 22.2% gain over the same time frame.

Shares of W.W. Grainger dipped 3.5% after the release of its Q2 earnings on Aug. 1. The company’s revenue amounted to $4.31 billion, falling short of Wall Street forecasts of $4.35 billion.

The consensus opinion on GWW stock is cautious, with an overall “Hold” rating. Of 13 analysts covering the stock, two advise a “Strong Buy” rating, 10 indicate a “Hold,” and one advises “Moderate Sell.”

Although GWW currently trades at a premium to the average analyst price target of $1,024.67, the Street-high target price of $1,250 suggests the stock could rally as much as 12.3%.

More Stock Market News from Barchart

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.