Grainger Surges to All-Time High on Powerful Earnings

W.W. Grainger

is riding high after posting record first quarter earnings. The Lake Forest, Illinois-based firm's EPS rose 14.4 percent to $2.94, easily topping estimates of $2.74. Revenue climbed 4.5 percent year-over-year to $2.3 billion, finishing about on par with expectations.

Grainger's sales grew fairly evenly in its US, Canadian and “other” segments, consisting of operations primarily in Asia, Europe and Latin America. Domestic sales climbed 4.3 percent to $1.77 billion, representing over three-fourths of the MRO company's total revenue. The increase was driven by growth in the commercial, contractor, light and heavy manufacturing and natural resources end markets. Sales in The Great White North rose 3.8 percent to $283.1 million and were lead by growth in the commercial, construction, forestry, light and heavy manufacturing and oil and gas end markets. Meanwhile, revenue from operations outside North America increased 3.7 percent to $247.9 million, driven primarily by strong growth in Japan and incremental sales in Brazil.

, North America's largest distributor of MRO products has generated two billionaires on gains in the housing market. Its largest shareholder, David W. Grainger, has a net worth of $1.2 billion, as notes Bloomberg. And, director James Slavik is also a billionaire, per Bloomberg, controlling $910 million worth of the company's shares. The report didn't note where his remaining wealth comes from to earn his billionaire status.

On February 20,

of Grainger. It cited positives such as an expanded product line, e-commerce investments and expansion in Asia and Latin America. However, planned growth spending, which Zacks expects to weigh on short-term margins, as well as declining sales growth counted against the firm.

Grainger has elevated its fiscal 2013 sales growth estimates to five to nine percent versus the previous three to nine percent. And, it has pumped up its earnings forecast from the original $10.85-$12 per share to $11.30-$12 per share. Still, at the middle-ground of $11.65, the 86 year-old firm would fall significantly short of the $11.75 analysts expect.

Despite it's so-so guidance, Grainger is up big on word of its successful first quarter. Its stock has eclipsed $240 for the first time in the firm's 29-year history as a public company and rests above $242 as of this writing. Grainger is up approximately 7.5 percent on Tuesday.