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W.W. Grainger, Inc. (GWW), headquartered in Lake Forest, Illinois, distributes maintenance, repair, and operating products and services. Valued at $48.2 billion by market cap, the company's products include motors, HVAC equipment, lighting, hand and power tools, pumps, packaging, material handling, adhesives, safety, janitorial, electrical, and metalworking equipment. The MRO giant is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Thursday, May 1.
Ahead of the event, analysts expect GWW to report a profit of $9.46 per share on a diluted basis, down 1.7% from $9.62 per share in the year-ago quarter. The company surpassed the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect GWW to report EPS of $40.22, up 3.2% from $38.96 in fiscal 2024. Its EPS is expected to rise 11.5% year over year to $44.86 in fiscal 2026.
GWW stock has underperformed the S&P 500’s ($SPX) 4.4% gains over the past 52 weeks, with shares up 3% during this period. However, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 2.4% rise over the same time frame.
GWW’s underperformance can be linked to muted demand in industrial and construction markets.
On Jan. 31, GWW shares closed down more than 5% after reporting its Q4 results. Its EPS of $9.71 fell short of Wall Street expectations of $9.75. The company’s revenue was $4.2 billion, meeting Wall Street forecasts. GWW expects full-year EPS to be between $39 to $41.50, and expects revenue in the range of $17.6 billion to $18.1 billion.
Analysts’ consensus opinion on GWW stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, three advise a “Strong Buy” rating, 11 give a “Hold,” one suggests a “Moderate Sell,” and one recommends a “Strong Sell.” GWW’s average analyst price target is $1093.95, indicating a potential upside of 11% from the current levels.
On the date of publication, Neha Panjwani 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.
