As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the maintenance and repair distributors industry, including Transcat (NASDAQ: TRNS) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 9 maintenance and repair distributors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.
Weakest Q4: Transcat (NASDAQ: TRNS)
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ: TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $66.75 million, up 2.4% year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
“In the 3rd quarter, we were pleased to close the Martin Calibration deal. Martin is a coveted calibration company that is highly synergistic and fulfills all our strategic acquisition drivers by expanding our geographic reach, increasing our capabilities and leveraging our existing infrastructure" commented Lee D. Rudow, President and CEO.
Transcat delivered the weakest performance against analyst estimates of the whole group. The stock is down 27.9% since reporting and currently trades at $71.71.
Is now the time to buy Transcat? Access our full analysis of the earnings results here, it’s free.
Best Q4: MSC Industrial (NYSE: MSM)
Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors
MSC Industrial reported revenues of $928.5 million, down 2.7% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.9% since reporting. It currently trades at $76.01.
Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free.
W.W. Grainger (NYSE: GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.23 billion, up 5.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 14.3% since the results and currently trades at $965.
Read our full analysis of W.W. Grainger’s results here.
VSE Corporation (NASDAQ: VSEC)
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
VSE Corporation reported revenues of $299 million, up 27.1% year on year. This number surpassed analysts’ expectations by 1.8%. It was an exceptional quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
VSE Corporation scored the fastest revenue growth among its peers. The stock is up 11.5% since reporting and currently trades at $112.61.
Read our full, actionable report on VSE Corporation here, it’s free.
DXP (NASDAQ: DXPE)
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
DXP reported revenues of $470.9 million, up 15.7% year on year. This result topped analysts’ expectations by 5.3%. It was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates.
DXP delivered the biggest analyst estimates beat among its peers. The stock is up 5.5% since reporting and currently trades at $83.
Read our full, actionable report on DXP here, it’s free.
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