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MSC Industrial (MSM) Tops Q2 EPS by 2c

April 6, 2016 6:48 AM EDT

MSC Industrial (NYSE: MSM) reported Q2 EPS of $0.80, $0.02 better than the analyst estimate of $0.78. Revenue for the quarter came in at $684.1 million versus the consensus estimate of $686.67 million.

GUIDANCE:

MSC Industrial sees Q3 2016 EPS of $0.98-$1.02, versus the consensus of $0.99. MSC Industrial sees Q3 2016 revenue of $729-741 million, versus the consensus of $744.3 million.

Erik Gershwind, president and chief executive officer, said, "The market environment during our fiscal second quarter remained challenging, consistent with continued low levels of demand in the industrial economy and particularly in metalworking and heavy manufacturing. Continued share gains, as well as strong execution on our gross margin countermeasures and cost reduction initiatives, helped offset this ongoing weakness."

Rustom Jilla, executive vice president and chief financial officer, added, "Our second quarter gross margin and EPS were both at the top of our guidance range, while average daily sales and operating expenses were in-line with our guidance. Our strong cash flows for the quarter reflect our working capital management, including a reduction in inventory, which we achieved while maintaining the very high service levels that define our competitive advantage."

Gershwind concluded, "In such a difficult environment, I am very pleased with how we have managed the business in the first half of fiscal 2016, and we remain in line with our annual operating margin framework. Should conditions improve, the combination of share gains, gross margin stabilization and improvements to our cost structure will result in strong earnings growth."

For earnings history and earnings-related data on MSC Industrial (MSM) click here.



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