LONDON, UK / ACCESSWIRE / July 23, 2018 /

If you want access to our free earnings report on W.W. Grainger, Inc. (NYSE: GWW) ("Grainger"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GWW. Grainger reported its second quarter fiscal 2018 operating and financial results on July 18, 2018. The seller of maintenance and other supplies outperformed top- and bottom-line expectations. Additionally, the Company raised its revenue and earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, W.W. Grainger most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the second quarter ended June 30, 2018, Grainger?s sales were $2.9 billion, increasing 9.4% versus $2.6 billion in Q2 2017, driven by a 9-percentage point (pp) increase from volume and 1 percentage point (pp) from foreign exchange, partially offset by a 1 pp decline from the divestiture of a specialty business. The Company?s reported numbers beat analysts? estimates of $2.82 billion.

During Q2 2018, Grainger?s gross profit margin was 38.8%s compared to 39.8% in Q2 2017. The Company?s adjusted gross profit margin was 38.9% for the reported quarter versus 39.9% in the prior year?s comparable quarter. The lower gross profit margin includes a 0.5 pp decline from implementation of the Financial Accounting Standards Board's new revenue recognition standard that primarily reclassifies certain costs related to KeepStock services from operating expenses to cost of goods sold and a 0.2 pp drop due to the timing of the Company's annual sales meeting.

Grainger?s operating earnings were $344 million in for Q2 2018, soaring 50% versus $229 million in Q2 2017. The Company?s adjusted operating earnings of $359 million advanced 23% versus $291 million in the year ago corresponding period. The improvement in earnings was driven by higher sales and strong operating expense leverage.

For Q2 2018, Grainger?s reported operating margin was 12.0%, an increase of 3.2 pp versus the prior year?s comparable quarter. The Company?s adjusted operating margin was 12.6%, reflecting an increase of 1.5 pp versus the year earlier same quarter.

Grainger reported earnings of $237.0 million, or $4.16 per diluted share, in Q2 2018 compared to $97.9 million, or $1.67 per diluted share, in Q2 2017. The Company?s adjusted earnings of $4.37 per share surged 59% versus $2.74 per share in the prior year?s same quarter. The improvement in earnings was driven mostly by higher sales, operating expense leverage, a lower tax rate, and a lower share count. Grainger?s earnings surpassed Wall Street?s estimates of $3.78 per share.

Cash Matters

Due to strong operating performance, Grainger?s operating cash flow was $248 million in Q2 2018 versus $191 million in Q2 2017, representing a 30% increase versus the year ago corresponding period.

For Q2 2018, Grainger?s free cash flow was $211 million versus $160 million in Q2 2017, representing a 32% growth compared to the year ago same period. Grainger used the cash generated during the reported quarter to invest in the business and return cash to shareholders through share repurchase and dividends.

Grainger?s capital expenditures were $54 million in Q2 2018. In the reported quarter, Grainger returned $111 million to shareholders through $83 million in dividends and $28 million to buy back 96,000 shares of its stock.

Outlook

Grainger raised its FY18 sales and earnings guidance and is now forecasting sales growth of 5.5% to 8.5% and earnings of $15.05 to $16.05 per share. The Company's previous FY18 guidance, communicated on April 19, 2018, was sales growth of 5% to 8% and earnings of $14.30 to $15.30 per share.

Stock Performance Snapshot

July 20, 2018 - At Friday?s closing bell, W.W. Grainger?s stock slightly fell 0.35%, ending the trading session at $340.25.

Volume traded for the day: 921.66 thousand shares, which was above the 3-month average volume of 724.99 thousand shares.

Stock performance in the last month ? up 7.36%; previous three-month period ? up 17.98%; past twelve-month period ? up 105.02%; and year-to-date ? up 44.02%

After last Friday?s close, W.W. Grainger?s market cap was at $18.99 billion.

Price to Earnings (P/E) ratio was at 25.02.

The stock has a dividend yield of 1.60%.

The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry.

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