MSC Industrial beats Q3 sales and adjusted EPS estimates

MSC Industrial Direct

01/07/2025 11:43

Overview

MSC Industrial fiscal Q3 net sales fell 0.8% year-over-year to $971.1 mln

Adjusted EPS of $1.08 beat analyst expectations, per LSEG data

EBIT misses analyst estimates, reflecting operational challenges, per LSEG data

Outlook

Company expects Q4 average daily sales growth of -0.5% to 1.5%

MSC Industrial anticipates Q4 adjusted operating margin of 8.5% to 9.0%

Company maintains full-year depreciation and amortization expense of ~$90M-$95M

MSC Industrial forecasts full-year capital expenditures of ~$100M-$110M

Result Drivers

CORE CUSTOMER IMPROVEMENT - Sequential improvement in core customer performance noted, per CEO Erik Gershwind

HIGH-TOUCH SOLUTIONS - Continued momentum in high-touch solutions driving sales, per CEO Erik Gershwind

COST OPTIMIZATION - Efforts to optimize cost to serve contributed to operational performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$971.10 mln
$970.20 mln (9 Analysts)
Q3 Adjusted EPS
Beat
$1.08
$1.03 (9 Analysts)
Q3 EPS
$1.02
Q3 EBIT
Miss
$82.70 mln
$86.90 mln (8 Analysts)
Q3 EBIT Margin
8.5%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for MSC Industrial Direct Co Inc is $84.00, about 1.2% below its last closing price of $85.02

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn4qDpT1a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)