Why MSC Industrial Shares Are Sinking Today
Portfolio Pulse from Lekha Gupta
MSC Industrial Direct Co Inc (NYSE:MSM) shares dropped after reporting Q1 FY24 results with revenue and adjusted EPS below analyst estimates. Revenue decreased by 0.4% Y/Y to $954.0 million, and adjusted EPS was $1.25, missing the consensus of $1.31. The company also saw a decline in adjusted operating income and a compression in operating margin. Despite the slower start, the company reiterated its FY24 outlook and the CEO expressed optimism about future growth and margin expansion. MSM shares fell 6.40% in premarket trading.

January 09, 2024 | 1:41 pm
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MSC Industrial reported lower-than-expected Q1 FY24 results with a slight revenue decline and a miss on adjusted EPS, leading to a premarket stock price drop of 6.40%.
The stock price is likely to go down in the short term due to the earnings miss and the negative reaction in premarket trading. The reported decline in revenue and adjusted EPS are critical factors that investors consider when assessing a company's performance, and missing analyst estimates typically results in a negative stock price movement.
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