Earnings Preview For MSC Industrial Direct Co

MSC Industrial Direct Co MSM is preparing to release its quarterly earnings on Thursday, 2024-10-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect MSC Industrial Direct Co to report an earnings per share (EPS) of $1.08.

MSC Industrial Direct Co bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

The company's EPS missed by $0.01 in the last quarter, leading to a 1.89% drop in the share price on the following day.

Here's a look at MSC Industrial Direct Co's past performance and the resulting price change:

Performance of MSC Industrial Direct Co Shares

Shares of MSC Industrial Direct Co were trading at $80.57 as of October 22. Over the last 52-week period, shares are up 44.65%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about MSC Industrial Direct Co

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MSC Industrial Direct Co.

The consensus rating for MSC Industrial Direct Co is Neutral, based on 1 analyst ratings. With an average one-year price target of $91.0, there's a potential 12.95% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Air Lease, GATX and Boise Cascade, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Air Lease, with an average 1-year price target of $53.0, indicating a potential 34.22% downside.
• As per analysts' assessments, GATX is favoring an Neutral trajectory, with an average 1-year price target of $140.0, suggesting a potential 73.76% upside.
• Boise Cascade received a Buy consensus from analysts, with an average 1-year price target of $143.75, implying a potential 78.42% upside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Air Lease, GATX and Boise Cascade are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

MSC Industrial Direct Co ranks in the middle among its peers based on consensus ratings. It is at the bottom for revenue growth, with a negative percentage. In terms of gross profit, it is at the top among its peers. However, its return on equity is in the middle compared to others.

Delving into MSC Industrial Direct Co's Background

MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 11 fulfillment centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2023, 95% of the firm's $4.0 billion of sales was generated in the US.

MSC Industrial Direct Co's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: MSC Industrial Direct Co's revenue growth over 3 months faced difficulties. As of 31 May, 2024, the company experienced a decline of approximately -7.12%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.32%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): MSC Industrial Direct Co's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.14% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): MSC Industrial Direct Co's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.89% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.41, MSC Industrial Direct Co adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for MSC Industrial Direct Co visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.