MSM

Image source: The Motley Fool. Wednesday, July 1, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Martina McIsaac Interim Chief Financial Officer - Gregory Clark VP of Investor Relations and Business Development - Ryan Mills Operator: Good morning, and welcome to the MSC Industrial Supply Fiscal 2026 Third Quarter Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Ryan Mills, VP of Investor Relations and Business Development. Please go ahead. Ryan Mills: Thank you, and good morning, everyone. Welcome to our fiscal 2026 third quarter earnings call. Martina McIsaac, President and Chief Executive Officer, and Greg Clark, Interim Chief Financial Officer, are on the call with me today. During today's call, we will refer to various financial data in the earnings presentation and operational statistics document, both of which can be found on our Investor Relations website. During this call, we may refer to certain adjusted financial results, which are non-GAAP measures. I will now turn the call over to Martina. Martina McIsaac: Thank you, Ryan, and good morning, everyone. On today's call, I will briefly cover our fiscal third quarter results and provide an update on the progress of our initiatives and the current demand environment. I will then turn the call over to Greg to provide greater detail on our fiscal 3Q performance and our outlook for the fiscal fourth quarter. Starting with our results on Slide 4. Average daily sales exceeded expectations with year-over-year growth of 7.8%, underpinned by continued strength in the daily sales of our core customer and noticeable improvement in national accounts. Adjusted operating margin of 10.6% also performed better than expected, resulting in an incremental operating margin of 32% in the quarter. Since becoming CEO earlier this year, I have spent a portion of my time getting to know our external stakeholders at conferences and roadshows. This has allowed me to ensure that the high-level KPIs we're using to drive urgency and performance in the business are aligned with the way our shareholders will evaluate our results and hold us accountable to progress. To summarize, we are focused on sales per rep per day and sales per total headcount, year-over-year volume improvement, adjusted operating margin expansion and adjusted in...

MSC Industrial Direct Company, Inc. MSM reported adjusted earnings per share of $1.43 for the third quarter of fiscal 2026, beating the Zacks Consensus Estimate of $1.28 by 11.72%. The bottom line increased 32.4% from the year-ago quarter’s adjusted earnings of $1.08 per share.Including one-time items, the company reported EPS of $1.44 compared with the year-ago quarter’s earnings of $1.02. Net sales were $1.05 billion, surpassing the consensus estimate of $1.03 billion by 1.74%. Sales increased 7.8% year over year, driven by stronger average daily sales, price benefits and a return to volume growth. Average daily sales increased 7.8% year over year and came in above the company’s quarterly outlook range. MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. Quote The cost of goods sold increased 7.5% year over year to $617 million. Gross profit moved up 8.2% to $430 million. The gross margin was 41.1% compared with the year-ago quarter’s 41%. Operating expenses rose 3.6% year over year to $324 million in the fiscal third quarter. Adjusted operating income amounted to $111 million, up 27.5% from the prior-year quarter. The adjusted operating margin expanded 160 basis points to 10.6%, supported by higher sales, gross margin gains and savings from headcount actions taken over the past 12 months. Core and Other Customers grew 8% year over year, while Public Sector sales were also up 8%. National Accounts increased 7%, reflecting improvement in a channel that the company highlighted as showing notable progress. Solutions-related sales also gained momentum. Sales to customers with an In-Plant program increased 16% and represented 21% of the total sales. Sales through vending machines rose 15% and accounted for 20% of sales, underscoring continued traction in MSC’s embedded customer solutions. MSM had cash and cash equivalents of $74 million at the end of the fiscal third quarter of 2026 compared with $56 million at the end of fiscal 2025. It generated cash flow from operating activities of $225.5 million in the first nine months of fiscal 2026 compared with $253.5 million in the first nine months of fiscal 2025. The company’s long-term debt was $90 million at the end of the reported quarter, down from $169 million at the end of fiscal 2025. For the fourth quarter of fiscal 2026, MSC Industrial expects average...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. MSC Industrial Direct Co., Inc. will release its third-quarter earnings report before the opening bell on Wednesday, July 1. Analysts expect the company to report quarterly earnings of $1.26 per share, up from $1.08 per share in the year-ago period. The consensus estimate for MSC Industrial Direct’s quarterly revenue is $1.03 billion. It reported $971.14 million last year, according to Benzinga Pro. DA Davidson analyst Chris Dankert, on June 16, initiated coverage on MSC Industrial Direct with a Buy rating and announced a price target of $145. Don’t Miss: The Average Family’s Finances Are More Complicated Than Ever. These Tools Aim To Make Them Easier To Manage. Think Your ‘Safe’ Stocks Protect You? You’re Ignoring the Real Growth Triggers — Here’s What to Add Now With the recent buzz around MSC Industrial Direct, some investors may be eyeing potential gains from the company’s dividends too. As of now, MSC Industrial Direct has an annual dividend yield of 2.98%, which is a quarterly dividend amount of 87 cents per share ($3.48 a year). So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $201,139 or around 1,724 shares. For a more modest $100 per month or $1,200 per year, you would need $40,251 or around 345 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.48 in this case). So, $6,000 / $3.48 = 1,724 ($500 per month), and $1,200 / $3.48 = 345 shares ($100 per month). Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time. Trending: Caught With Nothing Saved for Retirement? These 5 Game‑Changing Tips Could Still Save You How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in the dividend payment can impact the yield. If a company in...

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. MSC Industrial Direct stock has delivered a 63.1% total return over the past five years, yet the company currently screens as expensive on broad valuation checks. This sets up a clear question over how much of its recent strength is already reflected in the price. A 63.1% return over five years highlights that long term shareholders have already seen a solid payoff, which can reduce the margin of safety for new capital going in at today’s levels. Recent sales growth and margin improvement may support expectations for further earnings strength. However, any slowdown in industrial demand or pressure on pricing could challenge the current valuation. MSC Industrial Direct scores 0 out of 6 on Simply Wall St’s broader valuation checks, which suggests the stock does not screen as a clear bargain overall and instead leans on the expensive side 0/6. The issue now is whether MSC Industrial Direct’s current share price leaves enough potential upside to justify that richer valuation profile. MSC Industrial Direct delivered 43.1% returns over the last year. See how this stacks up to the rest of the Trade Distributors industry. The P/E ratio is a useful way to see how much you are paying for each dollar of MSC Industrial Direct’s earnings. Right now, MSC Industrial Direct trades on a P/E of 33.2x, compared with an average of about 24.1x for the Trade Distributors industry and a peer group average of 22.5x. This indicates the stock carries a clear premium to both its sector and closer peers. The fair P/E multiple implied by broader factors such as the company’s size, industry, and risk profile is 21.8x, which sits well below the current 33.2x. That gap indicates investors are currently willing to pay a higher price than this framework would support. Despite recent quarterly beats on sales and earnings lifting sentiment, the valuation remains well ahead of what the fair multiple would indicate. On the P/E multiple, MSC Industrial Direct currently appears overvalued compared with both its fair ratio and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for MSC Industrial Direct pick up where this valuation puzzle leaves off by spe...

MSC Industrial Direct Co., Inc. MSM used its fiscal third-quarter earnings call to argue that its turnaround is moving past disruption and into execution. Management pointed to improving volume trends, firmer national account performance and better operating leverage as signs that recent structural changes are beginning to translate into cleaner results.The central message was less about the quarter itself and more about what comes next. Executives said the company is now positioned to use a better industrial backdrop, tighter sales discipline and a leaner cost base to push toward stronger growth and a mid-teens operating margin over time. President and CEO Martina McIsaac said MSC Industrial is now managing the business against a narrower set of targets: sales per rep per day, sales per total headcount, year-over-year volume improvement, adjusted operating margin expansion, adjusted incremental margin and return on invested capital. She framed those measures as the clearest way for investors to judge whether the turnaround is gaining traction.McIsaac kept her tone measured. She said MSC Industrial is not yet producing breakout results, but described the quarter as a collection of smaller operational wins that indicate the company is heading in the right direction.That matters because management is asking investors to focus less on one quarter’s headline numbers and more on whether productivity, volume and margin discipline are improving together. McIsaac said the sales force optimization completed in December created noise in fiscal second quarter results, but that headwind is now largely behind the company. She cited improving average daily sales among affected customers and an inflection in national accounts as evidence that coverage and execution are stabilizing.McIsaac also said sales per rep per day improved by the high teens year over year, even with 225 fewer field heads. That was presented as proof that MSC Industrial is generating more productivity from a smaller commercial footprint.The remaining task, by management’s account, is to close the gap between customers least affected by the redesign and those still rebuilding relationships after rep changes or vacancies. Third-quarter sales increased 7.8% year over year to $1.05 billion, beating the Zacks Consensus Estimate of $1.03 billion by 1.74%. Adjusted EPS rose to $1.43 from $1.08 a year earlier...

In its recently reported third quarter ended May 30, 2026, MSC Industrial Direct posted sales of US$1,047.08 million and net income of US$80.36 million, with basic earnings per share from continuing operations of US$1.44, all higher than the same period a year earlier. This earnings beat, supported by stronger average daily sales and improved operating margins from productivity initiatives, points to meaningful progress in MSC Industrial Direct’s efforts to enhance efficiency and profitability. Next, we’ll examine how this margin improvement and earnings beat influence MSC Industrial Direct’s existing investment narrative and future expectations. Capitalize on the AI infrastructure supercycle with our selection of the 52 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To stay invested in MSC Industrial Direct, you need to believe its focus on productivity, salesforce optimization and higher value solutions can offset cyclical industrial softness and cost pressures. The latest quarter’s stronger sales, margin expansion and earnings beat help the near term catalyst of improved profitability feel more tangible, although macro demand and tariff risks remain key swing factors. Overall, the news supports rather than transforms the existing thesis and does not remove the main risks. Among recent announcements, the affirmation of the US$0.87 quarterly dividend on June 16, 2026, stands out alongside the earnings beat. Together, they highlight management’s willingness to return cash to shareholders while reporting higher sales, net income and earnings per share versus a year earlier. For investors focused on income plus operational improvement, this mix of dividend continuity and margin progress is likely to be particularly relevant when thinking about the near term setup. Yet behind the strong quarter, investors should still be aware of how softer industrial demand or tariff driven cost pressures could... Read the full narrative on MSC Industrial Direct (it's free!) MSC Industrial Direct's narrative projects $4.5 billion revenue and $322.6 million earnings by 2029. This requires 5.3% yearly revenue growth and about a $115 million earnings increase from $207.7 million today. Uncover how MSC Industrial Direct's forecasts yield a $103.14 fair value, a 16% downside to its current price. Some of the lowest ranked anal...

Shares of MSC Industrial Supply Co. (NYSE:MSM) climbed more than 10% in pre-market trading on Wednesday after the industrial distributor delivered third-quarter results that comfortably exceeded Wall Street expectations, supported by stronger operational execution. For the fiscal third quarter ended May 30, 2026, the company reported adjusted earnings per share of $1.43, beating analyst forecasts of $1.26 by $0.17. Revenue rose to $1.05 billion, ahead of the consensus estimate of $1.03 billion and up 7.8% from $971.1 million in the same period a year earlier. MSC Industrial attributed the increase in revenue to the benefits of pricing actions and a return to volume growth during the quarter. The stronger-than-expected financial performance, combined with improving operating metrics, helped fuel the sharp rally in the company’s shares. Adjusted operating margin expanded by 160 basis points year over year to 10.6%, exceeding the upper end of the company’s previously issued guidance. “Our fiscal third quarter results that exceeded expectations provide evidence that we are fundamentally doing more with less and taking the right steps,” said Martina McIsaac, President and Chief Executive Officer. “Underpinning this improved performance was strength in the Core Customer, which continued to outperform the total company, and notable improvement in National Accounts.” Looking ahead to the fourth quarter of fiscal 2026, MSC Industrial expects average daily sales growth of between 6.5% and 8.5% compared with the prior year. The company also forecast an adjusted operating margin in a range of 10.0% to 10.8%. Greg Clark, Vice President and Interim Chief Financial Officer, said the business generated an incremental operating margin of 32% during the quarter, allowing higher sales to translate into earnings growth of more than 40% on a GAAP basis and more than 30% on an adjusted basis year over year. MSC Industrial stock price

This article first appeared on GuruFocus. Average Daily Sales Growth: 7.8% year-over-year growth. Adjusted Operating Margin: 10.6%, with an incremental operating margin of 32%. Fiscal Third Quarter Sales: $1.047 billion, a 7.8% increase year over year. Gross Margin: 41.1%, a 10 basis point improvement year over year. Adjusted Operating Expenses: $319 million, with a 150 basis point reduction as a percentage of sales year over year. Adjusted EPS: $1.43, a 32% improvement from the prior year. Net Debt: Approximately $433 million, representing roughly 1 times EBITDA. Free Cash Flow Conversion: 94% fiscal year to date, with a target of 95% for the fiscal year. Vending Machine Installations: Increased 7% year over year to approximately 30,800 machines. Implant Program Growth: 7% year over year to a total of 426 programs. Capital Returned to Shareholders: $49 million in fiscal 3Q and $160 million fiscal year to date. Warning! GuruFocus has detected 8 Warning Sign with MSM. Is MSM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Average daily sales exceeded expectations with year-over-year growth of 7.8%, driven by core customers and national accounts. Adjusted operating margin improved to 10.6%, surpassing expectations and resulting in an incremental operating margin of 32%. Sales per rep per day improved by high teens year over year, indicating increased efficiency with fewer sales heads. The company achieved a 150-basis-point reduction in adjusted operating expenses as a percentage of sales. MSC Industrial Direct Co Inc (NYSE:MSM) was awarded the Verint Global Customer Award for its efforts in AI implementation. Despite improvements, there remains a gap in average daily sales between customers least impacted by changes and those more affected. The company is relatively heavy by 1,000 heads compared to public peers, indicating a need for further efficiency improvements. Freight expenses are expected to be a headwind in the fourth quarter due to lapping network optimization savings. The company faces a tougher volume comparison in the fourth quarter, with a 300 basis point tougher comp relative to the third quarter. There was an unexpected increase in bad debt expense during the quarter, driven by a few isolated customer iss...

MSC Industrial (MSM) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.10%. A quarter ago, it was expected that this distributor of industrial tools and supplies would post earnings of $0.84 per share when it actually produced earnings of $0.82, delivering a surprise of -2.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. MSC Industrial, which belongs to the Zacks Industrial Services industry, posted revenues of $1.05 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $971.15 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MSC Industrial shares have added about 41.4% since the beginning of the year versus the S&P 500's gain of 9.6%. While MSC Industrial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MSC Industrial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the comp...

MELVILLE, N.Y. (AP) — MELVILLE, N.Y. (AP) — MSC Industrial Direct Co. (MSM) on Wednesday reported fiscal third-quarter profit of $80.4 million. On a per-share basis, the Melville, New York-based company said it had net income of $1.44. Earnings, adjusted for pretax gains, came to $1.43 per share. The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.28 per share. The distributor of industrial tools and supplies posted revenue of $1.05 billion in the period, which also topped Street forecasts. Seven analysts surveyed by Zacks expected $1.03 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MSM at https://www.zacks.com/ap/MSM

MSC Industrial (MSM) reported $1.05 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 7.8%. EPS of $1.43 for the same period compares to $1.08 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +1.74%. The company delivered an EPS surprise of +12.1%, with the consensus EPS estimate being $1.28. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how MSC Industrial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Inventory Turnover: 4 compared to the 3 average estimate based on five analysts. Total Company ADS Percent Change: 7.8% versus 5.6% estimated by five analysts on average. Sales Days: 64 versus the five-analyst average estimate of 64. Average Daily Sales (ADS): $16.4 million versus the four-analyst average estimate of $16.1 million. Days Sales Outstanding: 37 compared to the 38 average estimate based on two analysts. View all Key Company Metrics for MSC Industrial here>>> Shares of MSC Industrial have returned +3.3% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MSC Industrial Direct (MSM) reported fiscal Q3 adjusted earnings Wednesday of $1.43 per diluted shar