MSC Industrial Registers 13% Sales Growth In Q1, Tops Consensus

MSC Industrial Direct Co Inc MSM reported first-quarter FY23 sales growth of 12.9% year-over-year to $957.7 million, beating the consensus of $947.7 million.
The non-GAAP gross margin contracted by ten bps to 41.5%. The non-GAAP operating margin expanded by 100 bps to 12.3%.
Adjusted EPS of $1.48 beat the consensus of $1.46.
MSC Industrial generated cash from operating activities of $76 million, compared to $57.8 million a year ago. It held cash and equivalents of $26.3 million.
CEO Erik Gershwind said, "We began the fiscal year on strong footing as average daily sales grew 12.9% or about 9 percentage points above the Industrial Production Index. Top-line performance was driven by the ongoing execution of our five growth drivers – solidify metalworking, leverage our portfolio strength, expand solutions, grow e-commerce, and diversify customers and end-markets."
Outlook: MSC Industrial reaffirmed its 2023 adjusted operating margin of 12.7%-13.3%.
Price Action: MSM shares closed lower by 0.21% at $81.50 on Wednesday.

Earnings Calendar