MSC INDUSTRIAL DIRECT Reports FY2023 Q2 Earnings Results on April 4

Earnings Overview

On April 4 2023, MSC INDUSTRIAL DIRECT ($NYSE:MSM) reported its earnings results for the quarterly period ending February 28 2023. The company recorded total revenue of USD 79.1 million in Q2 2023, a 13.2% increase from the same period in the previous year. Furthermore, net income rose 11.5%, totaling USD 961.6 million.

Transcripts Simplified

My name is Name, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later we will have a question-and-answer session and instructions will follow at that time. As a reminder, this conference is being recorded. Joining us today are Erik Gershwind, President and Chief Executive Officer; and Mike Shannon, Executive Vice President and Chief Financial Officer. Following the prepared remarks, we will open the lines for questions and ask that you limit yourself to two questions. I would now like to turn the conference over to Mike Shannon. Please go ahead, sir. Mike Shannon: Thanks Name, and good afternoon, everyone.

We are pleased to report another strong start to the year as we delivered record first quarter sales and earnings per share. This result exceeded our guidance range, driven by higher than expected operating income and lower tax rate due to discrete tax items in the quarter. I will now turn the call back over to Name. Name: We will now begin the question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad. The first question will come from Name at Firm. Please go ahead.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for MSM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for MSM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for MSM. More…

Key Ratios Snapshot

Some of the financial key ratios for MSM are shown below. More…

Share Price

The stock opened at $88.0, but closed at $83.6, indicating a 0.9% decrease from the previous closing price of 84.4. The increase in operating income was driven by higher sales and lower than expected overhead costs. Overall, MSC INDUSTRIAL DIRECT’s Q2 earnings results showed positive growth and indicate that the company is on track to meet or exceed its goals for the fiscal year. Live Quote…

Analysis

At GoodWhale, we help investors analyze the fundamentals of stocks to make informed decisions. We’ve taken a look at MSC INDUSTRIAL DIRECT and found that overall, it presents a medium risk investment. We’ve detected two risk warnings on the company’s balance sheet in terms of non-financial factors. If you’d like to learn more about this stock, register on GoodWhale.com for deeper insights and analysis. With our platform, you can gain access to up-to-date financial data and risk ratings so you can make the best investment decision for yourself. More…

Peers

The company has a wide range of products and services that it offers to its clients. The company has a strong presence in the market and is one of the leading companies in this sector. The company has a good reputation in the market and is known for its quality products and services. The company has a strong competition from other companies such as Hardwoods Distribution Inc, Watsco Inc, WESCO International Inc.

– Hardwoods Distribution Inc ($TSX:HDI)

As of 2022, Hardwoods Distribution Inc has a market cap of 534.86M and a ROE of 29.08%. The company is a wholesale distributor of hardwood lumber and related products in North America, with a network of over 60 locations in the United States and Canada. Products include hardwood lumber, softwood lumber, plywood, veneers, decking, flooring, and other millwork products. The company has a long history dating back to 1925, and is a publicly traded company on the Toronto Stock Exchange.

– Watsco Inc ($NYSE:WSO)

Watsco Inc is a provider of air conditioning, heating and refrigeration solutions. It has a market cap of 9.62B as of 2022 and a return on equity of 27.67%. The company serves the residential, commercial and industrial markets in the United States, Canada, Mexico and the Caribbean.

– WESCO International Inc ($NYSE:WCC)

Wesco International Inc is a holding company that, through its subsidiaries, engages in the distribution of electrical, industrial, and communications products and services in the United States, Canada, and Mexico. The company operates through three segments: Electrical, Industrial, and Communications. The Electrical segment offers products and services to customers in the construction, industrial, commercial, and utility end-markets. The Industrial segment provides products and services to customers in the mining, oil and gas, transportation, and infrastructure end-markets. The Communications segment offers products and services to customers in the communications, data center, and enterprise end-markets.

As of 2022, Wesco International Inc had a market cap of 6.45B and a Return on Equity of 16.97%.

Summary

MSC Industrial Direct is a attractive investment opportunity given the company’s strong financial performance in the past quarter. Total revenue grew by 13.2%, while net income rose 11.5%, indicating strong demand for their products and services. With a history of consistent growth, the company is well-positioned to continue its positive trajectory in the coming quarters.

Investors should watch the company closely as they report their quarterly earnings and analyze any changes in their operations. With the right analysis and timing, MSC Industrial Direct could be a great choice for investors looking for steady returns.