MSC Industrial Direct Co. (MSM) saw its stock surge 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 quarter ended November 30, 2024, MSC posted adjusted earnings per share of $0.86, easily surpassing analysts' estimates of $0.73. Net sales rose 2.6% year-over-year to $928.5 million, also beating Wall Street's expectations of $904.6 million.
The strong earnings were driven by solid performance amid a challenging operating environment, with growth in MSC'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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