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MSC Industrial (MSM) Earnings Top Estimates in Q3, Up Y/Y

·3 min read

MSC Industrial Direct Company, Inc. MSM reported third-quarter fiscal 2022 (ended on May 28, 2022) adjusted earnings per share (EPS) of $1.82, beating the Zacks Consensus Estimate of $1.75. The bottom line improved 28% year over year on the back of double-digit average daily sales growth and strong price realization.

Including one-time items, the company reported EPS of $1.78 compared with the year-ago quarter’s $1.68.

MSC Industrial generated revenues of around $959 million in the quarter under review, up 1.7% from $866 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $963 million.

Operational Update

The cost of goods sold increased 9.5% year over year to $547 million. Gross profit was up 12% to $411 million. Gross margin came in at 43% compared with the year-ago quarter’s 42%.

Adjusted operating expenses rose 5% year over year to $271 million during the fiscal third quarter. Adjusted operating income amounted to $140 million, up 28% from $109 million. Adjusted operating margin came in at 14.6% in the reported quarter compared with the prior-year quarter’s 12.6%.

Financial Position

MSC Industrial had cash and cash equivalents of $29 million at the end of the fiscal third quarter of 2022 compared with $40 million at the end of fiscal 2021. The company generated cash flow from operating activities of $135 million in the nine months ended on May 28, 2022, compared with the prior-year quarter’s $139 million.

The company’s long-term debt was $539 million at the end of the fiscal third quarter, down from $584 million at fiscal 2021-end.

MSC Industrial expects double-digit average daily sales growth to continue in the fiscal fourth quarter.

Price Performance

MSC Industrial’s shares have lost 10.4% in the past six months compared with the industry’s fall of 32.6%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

MSC Industrial currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK, Myers Industries MYE and Titan International TWI, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.

Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.

Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.

MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.

Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.

Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.


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