MSC Industrial Direct Posts Downbeat Q2 Earnings, Issues Weak Outlook
MSC Industrial Direct Co. Inc. (NYSE: MSM) reported weaker-than-expected results for the second quarter and issued a downbeat forecast for its current quarter.
For the current quarter, MSC Industrial Direct projects adjusted earnings of $0.95 to $0.99 per share on revenue of $740 million to $752 million. Analysts had expected earnings of $1.09 per share on revenue of $780.16 million.
The Melville, New York-based company posted a quarterly profit of $51.5 million, or $0.83 per share, versus a year-ago profit of $49.5 million, or $0.79 per share. Its adjusted earnings declined to $0.84 per share from $0.87 per share.
Its revenue climbed 6.8% to $706.4 million. However, analysts were expecting a profit of $0.85 per share on revenue of $718.17 million.
Its adjusted operating income slipped to $86.3 million, versus $89.8 million.
Jeff Kaczka, Executive Vice President and Chief Financial Officer, commented, "Despite the external challenges that led to sales well below our guidance, we delivered earnings per share within our guidance range. I am very encouraged by our stabilizing gross margins, reflecting the positive impact of our gross margin initiatives, and our continued expense management. We expect our gross margin to remain sequentially stable in the fiscal third quarter and our growth initiatives to continue fueling share gains as we move through the remainder of fiscal 2015 and beyond."
The average estimate among 9 Estimize users was for earnings of $0.86 per share and revenue of $718.59 million.
MSC Industrial Direct shares fell 0.06% to $71.00 in pre-market trading.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.