01—Abstract
Summary
Summary of the 10-Q filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.
W.W.
Grainger, Inc. reported solid financial results for the third quarter and the first nine months of 2024, demonstrating continued revenue growth and stable profitability. For the third quarter, net sales increased by 4.3% year-over-year to $4.39 billiona, with diluted earnings per share (EPS) rising 4.7% to $9.87. This growth was driven by both the High-Touch Solutions N.A. and Endless Assortment segments, with High-Touch Solutions N.A. showing a 3.3% increase in net sales and Endless Assortment posting a robust 8.1% growth.
For the first nine months of the year, net sales grew 3.6% to $12.94 billionb, and diluted EPS increased by 2.4% to $29.00. While gross profit margins saw a slight decrease year-over-year for both periods, operating earnings remained strong, indicating effective cost management.
The company also generated substantial cash flow from operations, increasing to $1.68 billionc for the first nine months of 2024, up from $1.43 billion in the prior year. This strong operational performance and cash generation, coupled with a healthy liquidity position, supports the company's ability to continue investing in its business and returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Net sales for the third quarter of 2024 increased by 4.3% to $4.39 billion compared to the same period in 2023.
- Diluted earnings per share (EPS) for the third quarter rose by 4.7% to $9.87.
- For the first nine months of 2024, net sales grew 3.6% to $12.94 billion, and diluted EPS increased 2.4% to $29.00.
- The High-Touch Solutions N.A. segment reported a 3.3% increase in net sales for the third quarter, while the Endless Assortment segment saw an 8.1% increase.
- Cash flow from operating activities for the first nine months of 2024 was $1.68 billion, an increase from $1.43 billion in the prior year.
- The company repurchased 233,609 shares of its common stock during the third quarter of 2024.
- W.W. Grainger, Inc. maintains a strong liquidity position with approximately $2.7 billion in available liquidity as of September 30, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, W.W. Grainger kept $0.11.
- Revenue$4.39B100.0%
- Cost of revenue−$2.67B60.8%
- Gross profit$1.72B39.2%
- Operating costs−$1.03B23.6%
- Operating income$686.0M15.6%
- Interest, other & tax−$200.0M4.6%
- Net income$486.0M11.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed October 31, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $4.39B$4.21B | +4.3% |
| Cost of Revenue | $2.67B$2.55B | +4.5% |
| Gross Profit | $1.72B$1.66B | +3.9% |
| SG&A Expenses | $1.03B$988.00M | +4.7% |
| Operating Income | $686.00M$667.00M | +2.8% |
| Net Income | $486.00M$476.00M | +2.1% |
| EPS (Basic) | $9.90$9.47 | +4.5% |
| EPS (Diluted) | $9.87$9.43 | +4.7% |
| Shares Outstanding (Basic) | 48.80M49.90M | −2.2% |
| Shares Outstanding (Diluted) | 48.90M50.10M | −2.4% |
05—Questions
Frequently Asked Questions
What is W.W. Grainger's revenue performance for the third quarter of 2024?
For the third quarter ended September 30, 2024, W.W. Grainger reported net sales of $4.39 billion, a 4.3% increase compared to $4.21 billion in the same period of 2023. This growth was observed in both the High-Touch Solutions N.A. and Endless Assortment segments.
How did profitability fare in the third quarter of 2024?
Diluted earnings per share (EPS) for the third quarter of 2024 increased by 4.7% to $9.87, up from $9.43 in the third quarter of 2023. Net earnings attributable to W.W. Grainger, Inc. were $486 million, a 2.1% increase year-over-year.
What is the company's cash flow situation?
W.W. Grainger generated strong cash flows from operating activities, reporting $1.68 billion for the first nine months of 2024, an increase from $1.43 billion in the same period of 2023. The company also reported approximately $2.7 billion in available liquidity as of September 30, 2024, indicating a healthy financial position.
Has the company engaged in share repurchases or dividend payments?
Yes, W.W. Grainger repurchased 233,609 shares of its common stock during the third quarter of 2024. The Board of Directors also declared a quarterly dividend of $2.05 per share, payable in December 2024.
06—Continue