MSC Industrial Direct Beats Analyst Estimates on EPS

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MSC Industrial Direct (NYS: MSM) reported earnings on Jan. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 26 (Q1), MSC Industrial Direct met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share grew significantly.

Margins grew across the board.

Revenue details
MSC Industrial Direct booked revenue of $546 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $545 million. Sales were 15% higher than the prior-year quarter's $473 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.95. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $0.95 for Q1 were 26% higher than the prior-year quarter's $0.75 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.2%, 20 basis points better than the prior-year quarter. Operating margin was 17.7%, 140 basis points better than the prior-year quarter. Net margin was 11%, 90 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $555 million. On the bottom line, the average EPS estimate is $0.95.

Next year's average estimate for revenue is $2.3 billion. The average EPS estimate is $4.03.

Investor Sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 463 members out of 475 rating the stock outperform, and 12 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give MSC Industrial Direct a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MSC Industrial Direct is outperform, with an average price target of $75.67.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of MSC Industrial Direct. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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