MSC Industrial posts worse-than-expected Q1 outcomes, shares up 2%

NEW YORK – MSC Industrial Provide Co. (NYSE:MSM) reported fiscal first quarter outcomes that missed analyst estimates. Nonetheless, shares have been up 2.29% in premarket buying and selling Wednesday.

The commercial and upkeep merchandise distributor posted adjusted earnings per share of $0.86 for the quarter ended November 30, lacking the analyst consensus of $0.98. Income got here in at $928.5 million, additionally lacking expectations of $945.29 million and declining 2.7% year-over-year.

“Our first quarter outcomes mirror strong efficiency in a difficult working surroundings,” mentioned CEO Erik Gershwind. He famous the corporate returned to progress within the public sector and continued increasing its options footprint.

CFO Kristen Actis-Grande mentioned income and adjusted working margin exceeded inner forecasts. The corporate generated important free money circulation, which together with its sturdy steadiness sheet “gives monetary optionality and permits us to return money to shareholders within the type of dividends and share repurchases,” she added.

Trying forward, MSC Industrial expects second quarter gross sales progress of -5% to -3% YoY. The corporate maintained its full-year outlook for metrics like capital expenditures and free money circulation conversion.

Whereas near-term macro circumstances stay mushy, administration expressed optimism about long-term progress prospects as finish markets normalize and the corporate executes on productiveness initiatives.

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