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MSC Industrial Direct Company, Inc. MSM shares traded higher on Wednesday after the company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42869296/msc-industrial-supply-co-reports-fiscal-2025-first-quarter-results" rel="noreferrer noopener">first-quarter financial results</a>.



Net sales declined 2.7% year-over-year to $928.48 million, beating the consensus of $904.604 million.



Average daily sales declined 2.7% year-over-year. Adjusted gross margin for the quarter was 40.7%, down from 41.2% a year ago.



Adjusted operating income for the quarter declined 28% year over year to $74.6 million, with an operating margin of 8%, down from 10.9% a year ago.



Adjusted EPS of $0.86, down 31.2% from the prior year, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of $0.73.</a>



As of November 30, the company held $57.266 million in cash and equivalents. Operating cash flow for the quarter totaled $101.686 million, up from $81.168 million a year ago.



Erik Gershwind, CEO, noted that near-term macro conditions remain soft, impacted by holiday and fiscal timing in December, but he expressed confidence in long-term growth. He highlighted self-help initiatives like the productivity pipeline and mission-critical strategy to support results as demand normalizes.



Outlook: MSC Industrial expects second-quarter ADS to decline 3%—5% and anticipates an adjusted operating margin of 6.5%- 7.5%.



For FY25, the company expects a free cash flow conversion of ~100% and capital expenditures of ~$100 million—$110 million.



Price Action: MSM shares are trading higher by 3.11% at $82.34 at the last check Wednesday.

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MSC Industrial reported Q1 results with net sales of $928.48M, beating consensus. CEO is confident in long-term growth despite soft conditions.

MSC Industrial Beats Q1 Estimates, Eyes Long-Term Growth Amid Near-Term Challenges - MSC Industrial Direct Co (NYSE:MSM)

Akanksha Bakshi

MSC Industrial Direct Co

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MSC Industrial Beats Q1 Estimates, Eyes Long-Term Growth Amid Near-Term Challenges

MSC Industrial Direct Co Inc

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