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W.W. Grainger, Inc. (GWW), headquartered in Lake Forest, Illinois, distributes maintenance, repair, and operating products and services. Valued at $50.9 billion by market cap, the company's products include motors, HVAC equipment, lighting, hand and power tools, pumps, packaging, material handling, adhesives, safety, janitorial, electrical, and metalworking equipment. The MRO giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Friday, Aug. 1.
Ahead of the event, analysts expect GWW to report a profit of $10 per share on a diluted basis, up 2.5% from $9.76 per share in the year-ago quarter. The company surpassed the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect GWW to report EPS of $40.47, up 3.9% from $38.96 in fiscal 2024. Its EPS is expected to rise 11.2% year-over-year to $45.01 in fiscal 2026.
GWW stock has outperformed the S&P 500 Index’s ($SPX) 11.6% gains over the past 52 weeks, with shares up 15.2% during this period. However, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 21.6% rise over the same time frame.
GWW's strong performance can be attributed to two significant factors: a growing shortage of skilled labor, which is prompting businesses to outsource non-core tasks, and the continuous expansion of its product offerings to attract more business from existing customers. These factors are expected to create ample opportunities for the company in the future.
On May 1, GWW shares closed up more than 2% after reporting its Q1 results. Its EPS of $9.86 surpassed Wall Street expectations of $9.46. The company’s revenue was $4.31 billion, missing Wall Street forecasts of $4.32 billion. GWW expects full-year EPS to be $39 to $41.50, and expects revenue in the range of $17.6 billion to $18.1 billion.
Analysts’ consensus opinion on GWW stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, three advise a “Strong Buy” rating, 11 give a “Hold,” one recommends a “Moderate Sell,” and one advocates a “Strong Sell.” GWW’s average analyst price target is $1,109.55, indicating a potential upside of 4.9% from the current levels.
