RBC Affirms Grainger (GWW) at 'Underperform'; Prelim. FY17 Outlook Slightly Below Views
- Donald Trump Sworn in as 45th U.S. President
- U.S. stocks pare gains after Trump's inaugural speech
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Herbalife (HLF) Says SEC Requested Documents on Anti-Corruption Compliance in China; Reviewed with DoJ
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
The firm noted
- Preliminary 2017 EPS guidance 2.9% below skeptical consensus; unsurprisingly reaffirms 2016 EPS guidance. At its annual Analyst Meeting on Nov-11, Grainger provided preliminary 2017 EPS guidance of $11.30-$12.40, falling 35c/2.9% short of $12.20 consensus at the midpoint, as well as our $12.25 estimate. We note that the $1.10 wide range is meaningfully tighter than last year’s initial $2.20 wide preliminary range for 2016. Sales are expected to be up 2%-6%, implying roughly $10.6 billion at the midpoint, a touch above $10.5 billion consensus and our $10.4 billion estimate. Unsurprisingly, the 2016 EPS range was reiterated.
- October daily sales flat as-expected; preliminary November sales weaker and “slightly below” October on easier comp. Following Fastenal’s better October update, expectations for October were slightly elevated, and they ultimately came in as-expected at flat overall, with organic sales also flat. For November, total sales are trending “slightly below” October, though this is on an easier comp, and implies some underlying deceleration on a two-year-stack. We view this as a negative incremental development.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- JPMorgan Cuts Teva Pharma (TEVA) to Neutral Amid Challenging Generic Environment
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Guidance
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!