MSC Industrial Direct (NYSE:MSM) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• MSC Industrial Direct reported earnings of $1.09 EPS for the quarter, exceeding analysts' expectations by $0.06 and achieving revenue of $978.18 million, up 2.7% year-over-year.
• The company declared a quarterly dividend of $0.87 per share, an increase from the previous $0.85, representing a 3.8% yield.
• Following the earnings announcement, MSC Industrial Direct's stock rose 4.4%, trading at $90.88 on the day of the report.

MSC Industrial Direct (NYSE:MSM - Get Free Report) announced its earnings results on Thursday. The industrial products company reported $1.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.06, Zacks reports. MSC Industrial Direct had a net margin of 5.30% and a return on equity of 14.99%. The firm had revenue of $978.18 million for the quarter, compared to analyst estimates of $964.03 million. During the same quarter last year, the business earned $1.03 earnings per share. MSC Industrial Direct's revenue was up 2.7% compared to the same quarter last year.

MSC Industrial Direct Stock Up 4.4%

MSC Industrial Direct stock traded up $3.84 during midday trading on Thursday, hitting $90.88. 282,559 shares of the stock were exchanged, compared to its average volume of 580,258. MSC Industrial Direct has a 1 year low of $68.10 and a 1 year high of $94.31. The firm has a market cap of $5.06 billion, a P/E ratio of 25.69 and a beta of 0.95. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.92 and a quick ratio of 0.91. The company has a 50 day moving average price of $89.81 and a two-hundred day moving average price of $84.68.

MSC Industrial Direct Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Wednesday, November 12th will be paid a dividend of $0.87 per share. This is a positive change from MSC Industrial Direct's previous quarterly dividend of $0.85. The ex-dividend date of this dividend is Wednesday, November 12th. This represents a $3.48 annualized dividend and a yield of 3.8%. MSC Industrial Direct's payout ratio is presently 96.05%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on MSM shares. Loop Capital raised their target price on shares of MSC Industrial Direct from $74.00 to $84.00 and gave the stock a "hold" rating in a research report on Wednesday, July 2nd. Robert W. Baird raised their target price on shares of MSC Industrial Direct from $84.00 to $95.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 2nd. Wolfe Research lowered shares of MSC Industrial Direct from an "outperform" rating to a "peer perform" rating in a research report on Wednesday, October 8th. Stephens raised their target price on shares of MSC Industrial Direct from $85.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. boosted their price objective on shares of MSC Industrial Direct from $89.00 to $93.00 and gave the company an "overweight" rating in a research note on Wednesday, October 15th. One research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $91.00.

Institutional Investors Weigh In On MSC Industrial Direct

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brevan Howard Capital Management LP purchased a new stake in MSC Industrial Direct during the 2nd quarter worth $493,000. Integrated Wealth Concepts LLC bought a new stake in shares of MSC Industrial Direct in the 1st quarter worth about $455,000. Hudson Bay Capital Management LP bought a new stake in shares of MSC Industrial Direct in the 2nd quarter worth about $454,000. Creative Planning increased its position in shares of MSC Industrial Direct by 17.1% in the 2nd quarter. Creative Planning now owns 4,266 shares of the industrial products company's stock worth $363,000 after purchasing an additional 622 shares during the last quarter. Finally, Cetera Investment Advisers increased its position in shares of MSC Industrial Direct by 5.5% in the 2nd quarter. Cetera Investment Advisers now owns 4,216 shares of the industrial products company's stock worth $358,000 after purchasing an additional 221 shares during the last quarter. Hedge funds and other institutional investors own 79.26% of the company's stock.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies.

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