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Stocks => Industrial Earnings, ETF & Charts => MSC Industrial MSM => Topic started by: ThePitBoss on January 11, 2017, 08:48:06 AM

Title: MSC Industrial Direct $MSM Shares up 6% After Earnings Guidance
Post by: ThePitBoss on January 11, 2017, 08:48:06 AM
MSC Industrial Direct through MSC Industrial Supply Co. is one of the largest industrial equipment distributors in the world. MSM earnings reports give us an insight into the industrial economy strength.

Earnings: 1Q17 net income fell to $54.11MM from $55.03MM last year, while EPS rose to $0.95 from $0.89 on lower weighted average shares. Net sales dropped to $686.27MM from $706.82MM. Slight decline due to higher interest expenses and difficult demand environment softness in pricing.

Reaction: MSC Industrial Direct NYSE: MSM 98.14 +5.97 +6.48%



In terms of cash conversion, $MSM turned 139% of its net income into cash flow from operations during 1Q17. The company expects FY17 cash conversion to be about 100%.

MSM expects 2Q17 net sales of $688-701MM and EPS of $0.86-0.90. At the midpoint, average daily sales are expected to increase roughly 1.5% as compared to the previous year quarter.

Has seen some supplier price increase activity that are selective and not broad based. The company anticipates to take a very modest price increase in the next two months, if the price increase activity continues in the market.

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Live From The Pit
Title: MSC Industrial Direct $MSM Earnings Conference Call
Post by: ThePitBoss on January 11, 2017, 08:49:50 AM
MSM Earnings Conference Call

Regarding stock keeping unit (SKU) growth, $MSM said its number for 2017 is around 75,000 to 85,000, which is slightly down from the last two years. The company said its strategy for growing SKU is through product line extension, product line fill in, and new supplier addition.
Commenting on the distribution channel vs. direct channel, $MSM said that distribution is winning as a channel in the marketplace and many of its suppliers are already doing their sales through distribution.