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Grainger (GWW) to Report Q4 Earnings: What's in the Cards?
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W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 3, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.91 billion, indicating growth of 2.2% from the year-ago quarter. The same for earnings per share stands at $3.78, suggesting a decline of 2.6% from the prior-year reported figure. The estimate for earnings has remained stable over the past 30 days.
Q3 Results
In the last reported quarter, Grainger’s revenues and earnings improved on a year-over-year basis. The company also beat the Zacks Consensus Estimate on both counts. Notably, the company has surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice. It has a trailing four-quarter earnings surprise of 2.35%, on average.
Grainger has been experiencing a surge in sales of personal protective equipment (PPE) and safety products courtesy of higher customer demand in response to the coronavirus pandemic. The incremental demand is primarily stemming from customers in the front-lines of the pandemic, including hospitals, healthcare providers, governments, first responders and critical manufactures. The company has been witnessing increased levels of safety and cleaning product sales to large healthcare, government and critical manufacturing customers, which might have favored the fourth-quarter performance.
Further, with customers forced to stay at home due to restrictions imposed by governments globally to stem the coronavirus spread, e-commerce sales are likely to have contributed to the to-be-reported quarter’s performance.
Meanwhile, the company caters to customers in the manufacturing and transportation industries. Activity in manufacturing has been improving through the final quarter of the year. However, this might have been offset by a weak transportation sector, which has been impacted by the pandemic. Also, its Canada business remains impacted by pandemic induced weakness.
The COVID-19 pandemic las led to a shift in demand toward lower-margin products. In addition, higher operating costs in response to the COVID-19 pandemic and related activities may have impacted operating margin in the quarter to be reported. Nevertheless, the company’s ongoing cost control measures undertaken in the wake of the ongoing uncertainty might have offset some of the impact.
Price Performance
Shares of the company have gained 20.2% in a year compared with the industry’s rally of 51.2%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Grainger this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Grainger has an Earnings ESP of 0.00%.
Zacks Rank: Grainger currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks, which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Sealed Air Corporation (SEE - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +2.90%.
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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Grainger (GWW) to Report Q4 Earnings: What's in the Cards?
W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 3, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.91 billion, indicating growth of 2.2% from the year-ago quarter. The same for earnings per share stands at $3.78, suggesting a decline of 2.6% from the prior-year reported figure. The estimate for earnings has remained stable over the past 30 days.
Q3 Results
In the last reported quarter, Grainger’s revenues and earnings improved on a year-over-year basis. The company also beat the Zacks Consensus Estimate on both counts. Notably, the company has surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice. It has a trailing four-quarter earnings surprise of 2.35%, on average.
W.W. Grainger, Inc. Price and EPS Surprise
W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote
Factors to Note
Grainger has been experiencing a surge in sales of personal protective equipment (PPE) and safety products courtesy of higher customer demand in response to the coronavirus pandemic. The incremental demand is primarily stemming from customers in the front-lines of the pandemic, including hospitals, healthcare providers, governments, first responders and critical manufactures. The company has been witnessing increased levels of safety and cleaning product sales to large healthcare, government and critical manufacturing customers, which might have favored the fourth-quarter performance.
Further, with customers forced to stay at home due to restrictions imposed by governments globally to stem the coronavirus spread, e-commerce sales are likely to have contributed to the to-be-reported quarter’s performance.
Meanwhile, the company caters to customers in the manufacturing and transportation industries. Activity in manufacturing has been improving through the final quarter of the year. However, this might have been offset by a weak transportation sector, which has been impacted by the pandemic. Also, its Canada business remains impacted by pandemic induced weakness.
The COVID-19 pandemic las led to a shift in demand toward lower-margin products. In addition, higher operating costs in response to the COVID-19 pandemic and related activities may have impacted operating margin in the quarter to be reported. Nevertheless, the company’s ongoing cost control measures undertaken in the wake of the ongoing uncertainty might have offset some of the impact.
Price Performance
Shares of the company have gained 20.2% in a year compared with the industry’s rally of 51.2%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Grainger this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Grainger has an Earnings ESP of 0.00%.
Zacks Rank: Grainger currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks, which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +3.34% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sealed Air Corporation (SEE - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +2.90%.
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>