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Grainger (GWW) to Report Q3 Earnings: What's in the Offing?

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·3 min read
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W.W. Grainger, Inc. GWW is scheduled to report third-quarter 2021 results on Oct 29, before the opening bell.

Q3 Estimates

The Zacks Consensus Estimate for the third-quarter revenues is pegged at $3.33 billion, indicating growth of 10.3% from the year-ago period. The Consensus Estimate for earnings per share stands at $5.31, suggesting an improvement of 17.5% from the prior-year quarter.

Q2 Results

In the last reported quarter, Grainger’s earnings and revenues missed the respective Zacks Consensus Estimates but increased year over year. The company has a trailing four-quarter average earnings surprise of 0.64%.

Factors to Note

Grainger has been seeing strong growth in the non-pandemic product sales as the U.S. economy recovers from the coronavirus crisis. This is likely to have aided the third-quarter performance. The company is particularly witnessing demand recovery in the commercial and heavy manufacturing end-markets. Apart from this, e-commerce sales have been improving as customers are staying indoors amid the health crisis. This is likely to have contributed to the to-be-reported quarter’s performance.

Higher operating costs might have impacted Grainger’s operating margin during the July-September period. Incremental inventory adjustments due to weak demand for certain pandemic products, rising freight and material costs as well as supply-chain challenges are also likely to have impacted the margin performance during the third quarter. Nevertheless, its cost-control measures are expected to have offset some of the negative impact.

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

W.W. Grainger, Inc. Price and EPS Surprise
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 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. But that’s 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: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Shares of the company have gained 24% in a year’s time, as against the industry’s loss of 5.5%.

Zacks Investment Research
Zacks Investment Research

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Stocks Poised to Beat Earnings Estimates

Here are some other Industrial Product stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Reliance Steel & Aluminum Co RS has an Earnings ESP of +3.54% and sports a Zacks Rank of 1 at present.

Columbus McKinnon Corporation CMCO has an Earnings ESP of +5.26% and carries a Zacks Rank #2, currently.

Deere & Company DE, currently a Zacks #2 Ranked stock, has an Earnings ESP of +5.55%.


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W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report

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