W W Grainger Shares Gain On Q4 Beat, Solid FY22 Outlook

W W Grainger Inc GWW reported fourth-quarter FY21 sales grew 14% year-over-year to $3.36 billion, +16.9% on a daily, constant currency basis, beating the consensus of $3.27 billion.
High-Touch Solutions N.A. segment, sales were up 14.7% Y/Y and up 16.3% on a daily, constant currency basis.
In the Endless Assortment segment, sales were up 13.4% Y/Y and up 20.6% on a daily, constant currency basis.
Adjusted EPS improved to $5.44 (+49% Y/Y), beating the consensus of $5.24.
The gross margin expanded by 240 bps to 37.3%. The adjusted operating income increased by 41% Y/Y to $417 million, and the margin expanded by 240 bps to 12.4%.
Grainger generated cash from operating activities for FY21 of $937 million, compared to $1.12 billion a year ago. Cash and cash equivalents stood at $241 million at the end of the quarter.
FY22 Outlook: Grainger expects net sales of $14.1 billion - $14.5 billion against the consensus of $13.93 billion.
It expects gross profit margin of 36.8% - 37.3%, operating margin of 12.5% - 13.1%, and EPS of $23.50 - $25.50, versus the consensus of $23.50.
The company forecasts operating cash flow of $1.1 billion - $1.3 billion and a share buyback of $600 million - $800 million.
Price Action: GWW shares traded higher by 2.58% at $5134.08 on the last check Thursday.

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