MSC Industrial (MSM) Q2 Earnings Report Preview: What To Look For

Anthony Lee /
2024/07/01 3:01 am EDT

Industrial supplies company MSC Industrial Direct (NYSE:MSM) will be reporting results tomorrow before market hours. Here's what you need to know.

MSC Industrial missed analysts' revenue expectations by 1.6% last quarter, reporting revenues of $935.3 million, down 2.7% year on year. It was a weak quarter for the company, with a miss of analysts' operating margin and organic revenue estimates.

Is MSC Industrial a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting MSC Industrial's revenue to decline 7.1% year on year to $979.5 million, a reversal from the 10% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.33 per share.

MSC Industrial Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days. MSC Industrial has missed Wall Street's revenue estimates three times over the last two years.

With MSC Industrial being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for industrial distributors stocks. However, the whole sector has faced a sell-off over the last month with stocks in MSC Industrial's peer group down 2.6% on average. MSC Industrial is down 7.4% during the same time and is heading into earnings with an average analyst price target of $85.8 (compared to the current share price of $79.31).

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