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The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.88 billion, indicating growth of 15.2% from the year-ago quarter. The consensus mark for earnings per share is pegged at $7.19, suggesting an improvement of 27.3% from the prior-year quarter. The earnings estimates have moved up 1% in the past 30 days.
Q2 Results
In the last reported quarter, Grainger’s earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. The company surpassed earnings estimates in all of the last four quarters. GWW has a trailing four-quarter positive earnings surprise of 7.9%, on average.
Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. 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. However, that’s not the case here.
Earnings ESP: Grainger has an Earnings ESP of -0.91%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Grainger has been seeing strong growth in core and non-pandemic product sales for the past few quarters. The company’s product mix is stabilizing as customers are returning to normal operations post-pandemic. Also, GWW is focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities and executing improvement initiatives within its supply chain. These factors are likely to have contributed to the company’s third-quarter performance.
Grainger’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing, strong revenue growth across the company’s North American regions and an expansion in large and midsize customers. Grainger is witnessing market-beating growth in the High-Touch Solutions market compared with the U.S. MRO (maintenance, repair and operating) market. The upside can be attributed to strategic activities, such as building advantaged MRO solutions, delivering unparalleled customer services and offering differentiated sales and services.
GWW’s Endless Assortment segment is likely to have benefited from acquiring new customers in the Zoro and MonotaRO businesses.
The company has been witnessing elevated material and freight costs for some time. This coupled with higher operating costs and incremental SG&A expenses due to higher technology investments are likely to have impacted its margins during the third quarter. However, its pricing actions might have offset some of the negative impacts.
Price Performance
Image Source: Zacks Investment Research
Grainger shares reached 25.1% in a year against the industry’s decline of 26.9%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Sonoco Products Company (SON - Free Report) currently has an Earnings ESP of +4.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings has remained unchanged at $1.43 over the past 60 days. The estimate suggests growth of 57% from the year-ago reported figure. SON has a trailing four-quarter earnings surprise of 4.1%, on average.
The Zacks Consensus Estimate for SON’s quarterly revenues is pegged at $1.92 billion. The estimate projects an increase of 57% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
AGCO Corporation (AGCO - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 0.3% in the past 60 days and is currently pegged at $3.12 per share. The projection indicates 29.5% growth from the year-ago reported figure.
The Zacks Consensus Estimate for AGCO’s quarterly revenues is pegged at $3.28 billion, which indicates an improvement of 20.4% from the year-ago reported figure. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average.
Image: Bigstock
Grainger (GWW) Set to Report Q3 Earnings: What's in Store?
W.W. Grainger, Inc. (GWW - Free Report) is scheduled to report third-quarter 2022 results on Oct 28 before the opening bell.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.88 billion, indicating growth of 15.2% from the year-ago quarter. The consensus mark for earnings per share is pegged at $7.19, suggesting an improvement of 27.3% from the prior-year quarter. The earnings estimates have moved up 1% in the past 30 days.
Q2 Results
In the last reported quarter, Grainger’s earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. The company surpassed earnings estimates in all of the last four quarters. GWW has a trailing four-quarter positive earnings surprise of 7.9%, on average.
W.W. Grainger, Inc. Price and EPS Surprise
W.W. Grainger, Inc. price-eps-surprise | W.W. Grainger, Inc. Quote
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Grainger this season. 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. However, that’s not the case here.
Earnings ESP: Grainger has an Earnings ESP of -0.91%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
Grainger has been seeing strong growth in core and non-pandemic product sales for the past few quarters. The company’s product mix is stabilizing as customers are returning to normal operations post-pandemic. Also, GWW is focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities and executing improvement initiatives within its supply chain. These factors are likely to have contributed to the company’s third-quarter performance.
Grainger’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing, strong revenue growth across the company’s North American regions and an expansion in large and midsize customers.
Grainger is witnessing market-beating growth in the High-Touch Solutions market compared with the U.S. MRO (maintenance, repair and operating) market. The upside can be attributed to strategic activities, such as building advantaged MRO solutions, delivering unparalleled customer services and offering differentiated sales and services.
GWW’s Endless Assortment segment is likely to have benefited from acquiring new customers in the Zoro and MonotaRO businesses.
The company has been witnessing elevated material and freight costs for some time. This coupled with higher operating costs and incremental SG&A expenses due to higher technology investments are likely to have impacted its margins during the third quarter. However, its pricing actions might have offset some of the negative impacts.
Price Performance
Image Source: Zacks Investment Research
Grainger shares reached 25.1% in a year against the industry’s decline of 26.9%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Sonoco Products Company (SON - Free Report) currently has an Earnings ESP of +4.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings has remained unchanged at $1.43 over the past 60 days. The estimate suggests growth of 57% from the year-ago reported figure. SON has a trailing four-quarter earnings surprise of 4.1%, on average.
The Zacks Consensus Estimate for SON’s quarterly revenues is pegged at $1.92 billion. The estimate projects an increase of 57% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
AGCO Corporation (AGCO - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 0.3% in the past 60 days and is currently pegged at $3.12 per share. The projection indicates 29.5% growth from the year-ago reported figure.
The Zacks Consensus Estimate for AGCO’s quarterly revenues is pegged at $3.28 billion, which indicates an improvement of 20.4% from the year-ago reported figure. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.