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CHICAGO - W.W. Grainger, Inc. (NYSE:GWW) reported second quarter earnings that fell short of analyst expectations, while simultaneously lowering its full-year outlook, sending shares plunging 11.9% in premarket trading.
The industrial supply company posted adjusted earnings per share of $9.97 for the second quarter, missing analyst estimates of $10.06. Revenue came in at $4.55 billion, slightly above the consensus estimate of $4.53 billion and up 5.6% YoY, or 5.1% on a daily, constant currency basis.
Grainger’s operating margin declined to 14.9%, down 20 basis points on a reported basis, or 50 basis points on an adjusted basis compared to the same period last year. The significant stock drop followed the company’s decision to cut its full-year 2025 guidance, now expecting EPS of $38.50 to $40.25, below the previous analyst consensus of $40.54.
"Our headline results for the quarter finished largely in-line with communicated expectations, although performance was impacted by some tariff-related factors which are also flowing into our updated outlook," said D.G. Macpherson, Chairman and CEO. "Even amid ongoing macroeconomic uncertainty, our commitment to our customers remains steadfast."
The company also updated its full-year revenue guidance to a range of $17.9 billion to $18.2 billion, compared to analyst expectations of $17.94 billion.
During the quarter, Grainger generated $377 million in operating cash flow and returned $336 million to shareholders through dividends and share repurchases.
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