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MSC Industrial Direct Company, Inc. MSM reported adjusted earnings per share of $1.42 in third-quarter fiscal 2021 (ended as of May 29, 2021), beating the Zacks Consensus Estimate of $1.37. The bottom-line figure remained flat, year over year.
Including one-time items, the company reported earnings per share of $1.68 in third-quarter fiscal 2021 compared with the year-ago quarter’s $1.40. The company’s Mission Critical program delivered $12 million of savings in the quarter, leading to improvement in earnings.
MSC Industrial generated revenues of $866.3 million, up 3.8% from the $835 million reported in the year-ago quarter. The top-line figure surpassed the Zacks Consensus Estimate of $847.8 million. Sales of non-safety and non-janitorial product lines rose 21% during the quarter.
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
Adjusted cost of goods sold increased 4% year over year to $499.8 million. Gross profit was up 3.4% to $366.5 million from the year-earlier quarter. Gross margin came in at 42.3%, flat year over year.
Adjusted operating expenses flared up 5.7% year over year to $257 million during the fiscal third quarter. Adjusted operating income in the reported quarter amounted to $109.5 million compared with the prior-year quarter’s $111.2 million. Operating margin came in at 12.6% in the reported quarter compared with last year’s 13.3%.
MSC Industrial had cash and cash equivalents of $27.4 million at the end of the fiscal third quarter compared with $125 million at the end of fiscal 2020. The company’s long-term debt stood at $346.5 million at the end of the fiscal third quarter, down from $497 million at fiscal 2020-end. The company generated cash flow from operating activities of $139 million at the end of the first nine months of fiscal 2021 compared with the prior-year period’s $215 million. It repurchased 507,000 shares during the fiscal third quarter.
The company’s Mission Critical program has resulted in cumulative savings of $29 million so far in fiscal 2021, more than its original goal of $25 million. It has reinvested around $7 million in growth programs, which brings total investment of roughly $15 million for fiscal 2021. The company now expects to drive gross savings of $40 million and invest $25 million in fiscal 2021.
Strong execution of Mission Critical initiatives will support the company’s share-repurchase programs and deliver additional savings over the long term.
MSC Industrial’s shares have gained 10.3% so far this year as against the industry’s decline of 0.8%.
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Zacks Rank & Stocks to Consider
MSC Industrial currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Industrial Products sector are Greif, Inc. GEF, Lindsay Corporation LNN and Pentair plc PNR. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif has an anticipated earnings growth rate of 47.2% for fiscal 2021. The company’s shares have gained around 29.3%, year to date.
Lindsay has an estimated earnings growth rate of 1% for the ongoing fiscal year. Year to date, the company’s shares have rallied 29.1%.
Pentair has a projected earnings growth rate of 26% for the current year. The stock has appreciated around 29%, so far this year.
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