Shares of MSC Industrial Direct Co. (MSM) surged over 5% in pre-market trading on Wednesday after the industrial supplies company reported better-than-expected fiscal first-quarter 2025 results and provided an upbeat outlook for the current quarter.
For the quarter ended November 30, 2024, MSC posted net sales of $928.5 million, up 2.6% year-over-year and beating Wall Street's expectations of $904.6 million. Adjusted earnings per share came in at $0.86, easily surpassing analysts' estimates of $0.73.
The strong quarterly performance was driven by solid execution amid a challenging operating environment, with growth in MSM's public sector business and continued expansion of its solutions footprint. CEO Erik Gershwind acknowledged room for improvement but expressed confidence in the company's "Mission Critical" strategy to address areas of weakness.
Looking ahead, MSC expects fiscal Q2 average daily sales to decline between 3% and 5% year-over-year, with adjusted operating margin projected in the range of 6.5% to 7.5%. The company maintained its full-year guidance for metrics such as depreciation and amortization, capital expenditures, free cash flow conversion, and tax rate.
Investors cheered MSC's ability to deliver better-than-expected results and management's optimistic outlook, sending the stock higher in early trading on Wednesday. The company's shares have gained over 20% in the past year, outperforming the broader market.
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