MSC Industrial Direct Q3: 10% Sales Growth, Margin Pressure & More
Portfolio Pulse from Anusuya Lahiri
MSC Industrial Direct Company, Inc (NYSE:MSM) reported Q3 FY23 sales growth of 10% YoY to $1.05 billion, beating consensus of $1.02 billion. However, gross margin contracted 220 bps to 40.7% and adjusted operating income decreased 1.2% YoY. Adjusted EPS of $1.74 missed consensus of $1.75. The company's operating cash flow YTD was $567.1 million, compared to $135.3 million a year ago. MSM shares closed lower by 1.08% at $95.95 on Wednesday.
June 29, 2023 | 12:10 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
MSC Industrial Direct reported Q3 FY23 sales growth of 10% YoY, beating consensus, but saw a contraction in gross margin and a decrease in adjusted operating income. Adjusted EPS missed consensus. MSM shares closed lower by 1.08%.
MSC Industrial Direct's Q3 FY23 sales beat consensus, which is positive. However, the contraction in gross margin and decrease in adjusted operating income, along with the miss on adjusted EPS, are negative factors that could impact the stock negatively in the short term. This is reflected in the 1.08% drop in MSM shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100