W.W. Grainger (NYSE:GWW) Posts Quarterly Earnings Results

Key Points

• W.W. Grainger reported quarterly earnings of $9.97 EPS, missing estimates by $0.03, although it experienced a 5.6% year-over-year revenue increase.
• The company has updated its FY 2025 guidance to an EPS estimate of $38.500-40.250.
• W.W. Grainger declared a quarterly dividend of $2.26 per share, with a dividend yield of 1.0% and a payout ratio of 23.21%.

W.W. Grainger (NYSE:GWW - Get Free Report) issued its quarterly earnings data on Friday. The industrial products company reported $9.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.07 by ($0.10), RTT News reports. The firm had revenue of $4.55 billion for the quarter, compared to analysts' expectations of $4.52 billion. W.W. Grainger had a return on equity of 51.28% and a net margin of 11.08%. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the business posted $9.76 EPS. W.W. Grainger updated its FY 2025 guidance to 38.500-40.250 EPS.

W.W. Grainger Trading Down 10.3%

Shares of GWW traded down $107.29 during mid-day trading on Friday, reaching $932.25. The company had a trading volume of 1,261,889 shares, compared to its average volume of 285,867. The stock has a market cap of $44.79 billion, a price-to-earnings ratio of 23.93, a price-to-earnings-growth ratio of 2.73 and a beta of 1.18. The firm has a fifty day simple moving average of $1,054.22 and a 200-day simple moving average of $1,035.63. W.W. Grainger has a fifty-two week low of $893.99 and a fifty-two week high of $1,227.66. The company has a current ratio of 2.74, a quick ratio of 1.60 and a debt-to-equity ratio of 0.59.

W.W. Grainger Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Monday, August 11th will be issued a $2.26 dividend. This represents a $9.04 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, August 11th. W.W. Grainger's dividend payout ratio (DPR) is 23.21%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GWW. JPMorgan Chase & Co. raised their price objective on shares of W.W. Grainger from $1,100.00 to $1,125.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 27th. Wolfe Research cut shares of W.W. Grainger from a "peer perform" rating to an "underperform" rating and set a $966.00 price objective for the company. in a research note on Thursday, April 3rd. Royal Bank Of Canada raised their price objective on shares of W.W. Grainger from $1,097.00 to $1,144.00 and gave the stock a "sector perform" rating in a research note on Friday, May 2nd. Finally, Morgan Stanley dropped their price objective on shares of W.W. Grainger from $1,215.00 to $1,160.00 and set an "equal weight" rating for the company in a research note on Friday, July 11th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, W.W. Grainger currently has a consensus rating of "Hold" and a consensus price target of $1,116.25.

Insiders Place Their Bets

In related news, VP Krantz Nancy L. Berardinelli sold 280 shares of W.W. Grainger stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $1,075.20, for a total transaction of $301,056.00. Following the transaction, the vice president owned 3,369 shares in the company, valued at approximately $3,622,348.80. The trade was a 7.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Laurie R. Thomson sold 761 shares of W.W. Grainger stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $1,042.86, for a total transaction of $793,616.46. Following the transaction, the vice president owned 578 shares in the company, valued at $602,773.08. The trade was a 56.83% decrease in their position. The disclosure for this sale can be found here. 6.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On W.W. Grainger

A hedge fund recently raised its stake in W.W. Grainger stock. Empowered Funds LLC increased its position in shares of W.W. Grainger, Inc. (NYSE:GWW - Free Report) by 18.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,851 shares of the industrial products company's stock after buying an additional 435 shares during the period. Empowered Funds LLC's holdings in W.W. Grainger were worth $2,816,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 80.70% of the company's stock.

About W.W. Grainger

W.W. Grainger, Inc, together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools.