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Lake Forest, Illinois-based W.W. Grainger, Inc. (GWW) distributes maintenance, repair, and operating products and services across North America, Europe, and Asia. With a market cap of $44.6 billion, the company operates through High-Touch Solutions N.A. and Endless Assortment segments. It is expected to announce its Q2 earnings before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect W.W. Grainger to report a profit of $9.59 per share, up 3.3% from $9.28 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters. Its EPS for the last reported quarter marginally grew to $9.62, exceeding the consensus estimate marginally.
Looking ahead to fiscal 2024, analysts expect W.W. Grainger to report an EPS of $39.22, up 7% from $36.67 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 10.2% annually to $43.23.
GWW stock is up 9% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.1% gains but outperforming the S&P 500 Industrial Sector SPDR’s (XLI) 7% returns during the same time frame.
GWW stock has shown mixed performance. Its solid market position in maintenance, repair, and operations products, combined with robust financial management, including share repurchases and consistent dividend hikes, drove its impressive price action over the past year.
However, the stock dipped 1.1% on April 25 after a mixed Q1 earnings report, highlighting revenue growth below forecasts and declining gross profit margins at Zoro, its online-only segment. Despite higher earnings per share, these factors disappointed investors, leading to selling pressure. Additionally, a downgrade by Erste Group from “Buy” to a “Hold” rating on June 14 added to the stock's woes.
The consensus opinion on W.W. Grainger stock is neutral, with an overall “Hold” rating. Out of the 11 analysts covering the stock, two recommend a “Strong Buy,” while the remaining nine analysts are playing it safe with a “Hold” rating.
The average target price for W.W. Grainger is $1,030.88, indicating a potential upside of 14.1% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
