W.W. Grainger, Inc. (NYSE: GWW)
W.W. Grainger, Inc. stock was one of the highest gainers on Wednesday, thanks to its excellent performance during the second quarter ended June 30, 2018.
The repair and maintenance products supplier easily beat Wall Street estimates after posting a profit of $236.9 million and revenue of $2.86 billion.
W.W. Grainger benefited from the strengthening US economy as both companies and retail consumers invested more in capital expenditures and maintenance.
Shares of the Lake Forest, Illinois-based company were trading at $339.19 after adding $34.23, or 11.22% at 12:45 pm in New York.
GGW stock has jumped 77% in the last twelve months. The shares have soared nearly 29% since the beginning of the year, while the Standard & Poor's 500 index has gained 5%.
GWW Earnings & Outlook
The company said it had profit of $236.9 million, or $4.16 per share, compared with $97.9 million, or $1.67 per share, in the same quarter last year.
Adjusted for restructuring costs, the earnings per share came in at $4.37. Total revenue was $2.86 billion during the quarter, versus $2.62 billion in the second quarter of the previous year.
Analyst had modeled earnings of $3.78 per share on revenue of $2.82 billion, according to figures compiled by Thompson Reuters.
The company expects its yearly earnings to be in the range of $15.05 to $16.05 per share, on sales of between $11 billion to $11.3 billion.
Analysts surveyed by Thompson Reuters are expecting the company to report full-year earnings of $14.99 per share on revenue of $11.2 billion.
W.W. Grainger CEO Comments
“The second quarter exceeded our expectations, with strong growth from U.S. large and medium customers, gross profit that was better than anticipated and meaningful operating expense leverage. We continue to gain share across both large and medium customers and acquire medium customers amid a strong economy. In Canada, we are on schedule with the business turnaround. And the single channel and international businesses also improved operating performance. Based on our performance and momentum, we are raising our sales and earnings per share guidance for the year,” said DG Macpherson, Chairman and Chief Executive Officer.
W.W. Grainger, Inc. Company Profile
W.W. Grainger, Inc. engages in the distribution of maintenance, repair, and operating products and services for institutions and businesses in the United States, Europe, Asia, Latin America, and Canada.
It provides safety and security equipment, material handling supplies, electrical and lighting products, hand and power tools, plumbing and pump supplies, metalworking tools, and maintenance and cleaning supplies, as well as other products.
The company also distributes janitorial supplies, fasteners, motors, gloves, and ladders. In addition, it offers inventory management services.
It serves government agencies, mid-sized and small businesses, large corporations, and other institutions.
Its products are available through service and sales representatives, catalogs, contact centers, distribution centers, and branches, as well as through its websites. W.W. Grainger,
Inc. was founded in 1927 by William Wallace Grainger. Its headquarters are located in Lake Forest, Illinois. -Reuters