MSC Edges Q1 Estimates, Mixed Guidance Sinks Stock

MSC Industrial Direct Co., Inc. (MSM) reported first quarter earnings of $0.75 per share on $472.8 million in revenue today, slightly beating Wall Street’s expectations. But the metalwork distributor’s Q2 guidance pushed shares down by as much as 5% in early trading.

Analysts were expecting slightly lower profit ($0.74 per share) and sales ($471.6 million) figures. MSC’s net earnings of $47.6 million topped last year’s figure by 51%, while revenue grew by 23% year-over-year.

The company expects a profit of $0.66 to $0.70 per share on $466 to $478 million in sales next quarter, while analysts are projecting a higher EPS ($0.72), but revenue ($466.1 million) on the low end of MSC’s guidance.

Shares of MSM, which had spent the past couples months establishing new 52-week highs, fell to an intraday low of $61.97 (-5.04%) shortly after noon, where they carry a 1.42% dividend yield.

Including last year’s 10% dividend hike, MSC has raised its dividend every year since it began returning cash to shareholders in 2003. The company has boosted its payout by a total of 340% over that span.

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