Manufacturing Slump Hurts MSC Industrial: Q3 Disappoints On Weak Demand
Portfolio Pulse from Lekha Gupta
MSC Industrial Direct Co., Inc. (NYSE:MSM) reported disappointing Q3 FY24 results with a 7.1% Y/Y decline in net sales to $979.4 million, missing the consensus of $1.014 billion. Adjusted EPS fell 23.6% Y/Y to $1.33, also missing the consensus of $1.50. The company cited weak demand in manufacturing sectors and non-recurring Public Sector orders as key factors. The FY24 outlook was revised down, with ADS growth expected to decline by 4.7% to 4.3% and adjusted operating margin guidance lowered to 10.5% - 10.7%.
July 02, 2024 | 1:48 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
MSC Industrial Direct Co., Inc. (NYSE:MSM) reported disappointing Q3 FY24 results with a 7.1% Y/Y decline in net sales and a 23.6% drop in adjusted EPS, both missing consensus estimates. The company cited weak demand in manufacturing sectors and non-recurring Public Sector orders as key factors. The FY24 outlook was revised down, with ADS growth expected to decline by 4.7% to 4.3% and adjusted operating margin guidance lowered to 10.5% - 10.7%.
The disappointing Q3 results and the downward revision of the FY24 outlook indicate significant challenges for MSC Industrial. The weak demand in manufacturing sectors and non-recurring Public Sector orders have negatively impacted the company's performance. The missed consensus estimates for both net sales and adjusted EPS, along with the revised down outlook, are likely to put downward pressure on the stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100