MSC Industrial posts worse-than-expected Q1 results, shares up 2%

Published 01/08/2025, 08:06 PM
MSM
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NEW YORK - MSC Industrial Supply Co. (NYSE:MSM) reported fiscal first quarter results that missed analyst estimates. However, shares were up 2.29% in premarket trading Wednesday.

The industrial and maintenance products distributor posted adjusted earnings per share of $0.86 for the quarter ended November 30, missing the analyst consensus of $0.98. Revenue came in at $928.5 million, also missing expectations of $945.29 million and declining 2.7% year-over-year.

"Our first quarter results reflect solid performance in a challenging operating environment," said CEO Erik Gershwind. He noted the company returned to growth in the public sector and continued expanding its solutions footprint.

CFO Kristen Actis-Grande said revenue and adjusted operating margin exceeded internal forecasts. The company generated significant free cash flow, which along with its strong balance sheet "provides financial optionality and allows us to return cash to shareholders in the form of dividends and share repurchases," she added.

Looking ahead, MSC Industrial expects second quarter sales growth of -5% to -3% YoY. The company maintained its full-year outlook for metrics like capital expenditures and free cash flow conversion.

While near-term macro conditions remain soft, management expressed optimism about long-term growth prospects as end markets normalize and the company executes on productivity initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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