MSC Industrial beats Q2 estimates, shares edge higher

Published 03/04/2025, 12:00
MSC Industrial beats Q2 estimates, shares edge higher

NEW YORK - MSC Industrial Supply Co. (NYSE:MSM) reported better-than-expected second quarter earnings on Thursday.

The company’s shares were up 1.41% in premarket trading following the release.

The industrial equipment distributor posted adjusted earnings per share of $0.72, topping analyst estimates of $0.68. Revenue came in at $891.7 million, below the consensus forecast of $900.82 million and down 4.7% YoY.

"During our fiscal second quarter, we continued expanding our solutions footprint, maintained momentum in the Public Sector, and completed important milestones in reenergizing our core customer growth rate," said CEO Erik Gershwind.

While sales declined, the company noted that January and February performance exceeded historical month-over-month trends. Gross margin performance was strong, partly aided by favorable supplier rebates.

For the third quarter, MSC Industrial expects average daily sales growth of -2% to 0% YoY and adjusted operating margin of 8.7% to 9.3%.

The company maintained its full-year fiscal 2025 outlook, including capital expenditures of $100-$110 million and a tax rate of 24.5-25%.

Despite ongoing economic uncertainty, management expressed optimism about early indicators from growth initiatives and improving sequential growth rate trends. MSC Industrial aims to achieve 400 basis points of growth above the IP Index long-term while expanding operating margins to the mid-teens.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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