MSC Industrial (MSM) Q2 Earnings Report Preview: What to Look for

Industrial supplies company MSC Industrial Direct (NYSE:MSM) is set to report results tomorrow before market hours. Here’s what you need to know.

MSC Industrial missed analysts’ revenue expectations by 1.6% in the most recent quarter, reporting revenue of $935.3 million, down 2.7% year-over-year. It was a weak quarter for the company, with it missing analyst estimates for operating margin and organic revenue.

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Analysts are expecting MSC Industrial revenue to fall 7.1% year over year for the quarter to $979.5 million, reversing the 10% increase seen in the same quarter last year. Adjusted earnings are expected to come in at $1.33 per share.

On the earnings front, analysts covering the company are increasingly bearish, with revenue estimates having been revised down three times in the past 30 days. MSC Industrial has missed Wall Street revenue estimates three times in the past two years.

With MSC Industrial being the first company in the same industry to report earnings this season, we have nowhere else to look for clues as to what this quarter will look like for industrial distributor stocks. However, the entire sector has seen a sell-off over the past month, with shares in the MSC Industrial group falling an average of 2.6%. MSC Industrial is down 7.4% in the same time frame and is heading to earnings with an average analyst price target of $85.8 (versus the current share price of $79.31).

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