MSC Industrial Q4: Earnings Beat, 1.3% Sales Growth, Margin Headwinds & More
Portfolio Pulse from Shivani Kumaresan
MSC Industrial Direct Company, Inc. (NYSE:MSM) reported Q4 FY23 sales growth of 1.3% YoY to $1.035 billion, beating the analyst consensus estimate. However, gross profit decreased 2% to $419.5 million, with the margin shrinking from 41.9% to 40.5%. Operating income declined 18% to $118.1 million. Adjusted EPS of $1.64 beat the analyst consensus of $1.62. The company held $50 million in cash and equivalents. MSM shares are trading lower by 3.53% at $92.05.
October 25, 2023 | 2:05 pm
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NEGATIVE IMPACT
MSC Industrial Direct reported Q4 FY23 sales growth of 1.3% YoY, beating estimates. However, gross profit and operating income declined. MSM shares are trading lower by 3.53%.
Despite beating sales estimates, MSC Industrial Direct reported a decrease in gross profit and operating income, which could be the reason for the decline in the company's share price. The market may be reacting to these mixed results, leading to a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100