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Grainger (GWW) Beats on Q4 Earnings & Revenues

Zacks Equity Research

W.W. Grainger, Inc. GWW is a leading North American distributor of material-handling equipment, safety and security supplies. The company remains focused on providing the lowest total cost maintenance, repair and operating (MRO) solution to select customer groups.

Even though Grainger will benefit from acquisitions, focus on restructuring and growth in its eCommerce channel, its results continue to bear the brunt of weak demand, unfavorable operating expenses and impact of Hurricane Matthew. Given the deflationary environment, the company remains cautious on gross margins. Moreover, weakening monthly sales and underperforming Canada segment will weigh on fourth-quarter 2016 results.

Let’s have a quick look on Grainger’s fourth-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Grainger for the fourth quarter has remained static over the past month. Coming to the earnings surprise history, Grainger beat the Zacks Consensus Estimate in three out of the trailing four quarters with an average positive earnings surprise of around 3.71%.

W.W. Grainger, Inc. Price and EPS Surprise


W.W. Grainger, Inc. Price and EPS Surprise | W.W. Grainger, Inc. Quote


Grainger posted adjusted earnings of $2.45 per share in the fourth-quarter of 2016. Earnings beat the Zacks Consensus Estimate of $2.36. Investors should note that these figures take out special items. However, earnings declined 2% year over year during the quarter owing to adjustments from restructuring plans as well as several accounting actions.


Grainger posted revenues of $2,471 million, which marginally came ahead of the Zacks Consensus Estimate for revenues of $2,446 million.

Key Stats To Note

Grainger reaffirmed its sales growth guidance of 2% to 6% for fiscal 2017 and earnings per share of $11.30 to $12.40.

Zacks Rank

Currently, Grainger has a Zacks Rank #3 (Hold), but that could change following Grainger’s earnings report which was just released.

Market Reaction

Grainger’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this Grainger’s earnings report later!

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