MSC Industrial Direct Clocks 11% Revenue Growth In Q3

MSC Industrial Direct Co Inc MSM reported third-quarter FY22 sales growth of 10.7% year-over-year to $958.6 million, missing the consensus of $960.52 million.
Gross margin expanded 60 bps to 42.9%. Operating income increased 6.4% Y/Y to $136.8 million, and margin contracted by 50 bps to 14.3%, while adjusted operating margin expanded by 200 bps to 14.6%.
Adjusted EPS increased 28.2% Y/Y to $1.82, beating the consensus of $1.74.
MSC Industrial generated cash from operating activities YTD of $135.3 million, compared to $139.36 million a year ago.
It held cash and equivalents of $28.84 million as of May 28, 2022.
MSM achieved double-digit average daily sales growth, roughly 500 bps above the Industrial Production (IP) index.
The company expects double-digit average daily sales growth to continue in Q4.
"We are encouraged with progress on our Mission Critical journey and, in fact, are ahead of schedule against our primary goals for fiscal 2023 - to grow revenues at least 400 basis points above the IP index and to restore ROIC into the high teens," commented CEO Erik Gershwind.
Price Action: MSM shares closed lower by 3.96% at $73.56 on Tuesday.