Overview

* Grainger Q3 sales rise 6.1% to $4.7 bln, beating analyst expectations

* Adjusted EPS for Q3 beats estimates, rising 3.4% yr/yr

* Company narrows full-year 2025 adjusted EPS guidance to $39.00-$39.75

Outlook

* Grainger narrows 2025 adjusted EPS guidance to $39.00-$39.75

* Company revises 2025 net sales forecast to $17.8-$18.0 bln

* Grainger expects 2025 operating cash flow of $2.10-$2.20 bln

Result Drivers

* ENDLESS ASSORTMENT GROWTH - Sales in the Endless Assortment segment rose 18.2%, driven by strong performance at MonotaRO and Zoro

* HIGH-TOUCH SOLUTIONS MARGIN DECLINE - Gross profit margin in High-Touch Solutions - N.A. decreased 50 basis points due to tariff-related inflation and LIFO inventory valuation headwinds

* U.K. MARKET EXIT IMPACT - Planned exit from the U.K. market, including Cromwell divestiture, affected reported operating margin and tax rate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net Beat $4.65 $4.64

Sales bln bln (15

Analysts

)

Q3 Beat $10.21 $9.94

Adjusted (17

EPS Analysts

)

Q3 EPS $6.12

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

* Wall Street's median 12-month price target for WW Grainger Inc ( GWW ) is $1,006.00, about 4.9% above its October 30 closing price of $956.24

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)