The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how maintenance and repair distributors stocks fared in Q4, starting with W.W. Grainger (NYSE: GWW).
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 9 maintenance and repair distributors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.8%.
While some maintenance and repair distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
W.W. Grainger (NYSE: GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.23 billion, up 5.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.
"Amidst a stable, yet muted demand environment throughout 2024, our team delivered strong performance by staying focused on what matters and delivering an outstanding customer experience. Across both our High-Touch Solutions and Endless Assortment segments, we deepened our customer relationships and advanced our capabilities, all while delivering on our commitments to shareholders," said D.G. Macpherson, Chairman and CEO.
The stock is down 11.9% since reporting and currently trades at $991.87.
Is now the time to buy W.W. Grainger? Access our full analysis of the earnings results here, it’s free.
Best Q4: MSC Industrial (NYSE: MSM)
Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors
MSC Industrial reported revenues of $928.5 million, down 2.7% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $79.52.
Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Transcat (NASDAQ: TRNS)
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ: TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $66.75 million, up 2.4% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Transcat delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29% since the results and currently trades at $70.61.
Read our full analysis of Transcat’s results here.
WESCO (NYSE: WCC)
Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
WESCO reported revenues of $5.5 billion, flat year on year. This print topped analysts’ expectations by 1.5%. More broadly, it was a slower quarter as it logged a miss of analysts’ adjusted operating income estimates.
The stock is down 10.2% since reporting and currently trades at $166.36.
Read our full, actionable report on WESCO here, it’s free.
Fastenal (NASDAQ: FAST)
Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Fastenal reported revenues of $1.82 billion, up 3.7% year on year. This number missed analysts’ expectations by 1%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates.
The stock is up 2.3% since reporting and currently trades at $76.52.
Read our full, actionable report on Fastenal here, it’s free.
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