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MSC Industrial Earnings Beat Estimates in Q2, Revenues Decline Y/Y

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MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Including one-time items, the company reported an EPS of 70 cents compared with the year-ago quarter’s $1.10.

MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise

 

MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise

MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. Quote

MSM’s Average Daily Sales Fall Y/Y in Q2

MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.

MSC Industrial’s Q2 Margins Dip Y/Y

The cost of goods sold decreased 3.7% year over year to $526 million. Gross profit moved down 3.7% to $365 million. The gross margin was 41% compared with the year-ago quarter’s 41.5%.

Operating expenses rose 3.5% year over year to $301.6 million in the fiscal second quarter. Adjusted operating income amounted to $64 million, down 34.9% from the prior-year quarter. The adjusted operating margin was 7.1% in the reported quarter compared with the prior-year quarter’s 10.5%.

MSM’s Cash & Debt Position

MSC Industrial had cash and cash equivalents of $41.3 million at the end of the fiscal second quarter of 2025 compared with $30 million at the end of fiscal 2024. It generated a cash flow from operating activities of $156 million in the first half of fiscal 2025 compared with $160 million in the first half of fiscal 2024.

The company’s long-term debt was $305 million at the end of the reported quarter, up from $279 million at the fiscal 2024 end.

MSC Industrial’s Q3 Guidance

MSM expects third-quarter fiscal 2025 average daily sales to decline 2% or remain flat compared with the year-ago quarter's actual. The adjusted operating margin is expected between 8.7% and 9.3% for the quarter.

MSM Stock’s Price Performance

The company’s shares have lost 22.2% in the past year compared with the industry’s decline of 19.1%.

 

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MSC Industrial’s Zacks Rank

MSM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Industrial Services Stocks Awaiting Results

W.W. Grainger, Inc. (GWW - Free Report) is expected to release its first-quarter 2024 results on May 1.

The Zacks Consensus Estimate for Grainger’s earnings per share is pegged at $9.46 for the fiscal first quarter, implying a decline of 1.7% from the year-ago reported figure. The consensus estimate for Grainger’s total revenues is pinned at $4.3 billion, indicating a year-over-year increase of 2.4%

Hillenbrand, Inc. (HI - Free Report) is anticipated to release its second-quarter fiscal 2025 results soon. The Zacks Consensus Estimate for Hillenbrand’s earnings per share is pegged at 54 cents for the second fiscal quarter, implying a decline of 28.9% from the year-ago reported figure. The consensus estimate for Hillenbrand’s total revenues is pinned at $691 million, indicating a year-over-year dip of 12%.

Hudson Technologies, Inc. (HDSN - Free Report) is expected to release its first-quarter 2025 results soon. The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 1 cent for the first quarter, implying a decline of 95% from the year-ago reported figure. The consensus estimate for Hudson Industrial’s total revenues is pinned at $47 billion, indicating a year-over-year decrease of 28%.


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