WW Grainger Inc. is set to report third-quarter earnings Wednesday before the market opens, according to the source. Analysts expect earnings of $11.67 per share on revenue of $5.07 billion. The source says that represents year-over-year growth of 14.3% for EPS and 7.87% for revenue.
Sequentially, the EPS forecast is lower than the prior quarter's $12.01, while revenue is expected to edge up from $5.02 billion. The source says this divergence raises questions about margin pressure.
Of 19 analysts covering the stock, 14 rate it a hold, the source reports. The mean price target is $1,331.57, which the source says implies roughly 3% downside from the current price near $1,378. EPS estimates have declined slightly over the past 60 days, while revenue estimates have edged up modestly.
Grainger recently acquired AWM technology assets for $210 million, according to the source. The source says the deal supports the company's push to strengthen digital procurement and customer engagement.
In its second-quarter results reported in early August, Grainger posted EPS of $12.01 against a forecast of $11.28, and revenue of $5.02 billion against a $4.95 billion consensus, the source states. The stock has climbed more than 50% over the past year and trades near its 52-week high of $1,419.91.