W.W. Grainger’s stock tumbled 6.73% in pre-market trading on Tuesday, despite posting second-quarter results that beat both earnings and revenue estimates, as the company’s full-year earnings guidance fell short of investor expectations.
The industrial-supplies distributor reported Q2 net sales of $5.02 billion, surpassing the consensus estimate of $4.95 billion, while earnings per share came in at $12.01, well above the $11.30 analysts had forecast. However, the company’s outlook for full-year adjusted EPS of $45.50 to $47.25 appeared to disappoint markets, with the lower end of the range coming in below the consensus view of approximately $45.55, and the midpoint roughly in line with already tempered expectations.
The pre-market selloff suggests that the forward guidance overshadowed the strong quarterly performance, as traders reassessed the company’s growth trajectory for the remainder of the year. The full-year net sales forecast of $19.4–$19.7 billion came in around the $19.48 billion estimate, but failed to inject additional confidence to offset the cautious EPS outlook.
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