Let’s dig into the relative performance of Global Industrial (NYSE: GIC) and its peers as we unravel the now-completed Q4 maintenance and repair distributors earnings season.
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 5.7% since the latest earnings results.
Global Industrial (NYSE: GIC)
Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.
Global Industrial reported revenues of $302.3 million, down 5.6% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates.
Global Industrial delivered the slowest revenue growth of the whole group. The stock is down 9% since reporting and currently trades at $22.11.
Read our full report on Global Industrial 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 4.5% since reporting. It currently trades at $76.30.
Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Transcat delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 27.4% since the results and currently trades at $72.25.
Read our full analysis of Transcat’s results here.
WESCO (NYSE: WCC)
Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
WESCO reported revenues of $5.5 billion, flat year on year. This number beat analysts’ expectations by 1.5%. Taking a step back, it was a slower quarter as it logged a miss of analysts’ adjusted operating income estimates.
The stock is down 16.6% since reporting and currently trades at $154.51.
Read our full, actionable report on WESCO here, it’s free.
Distribution Solutions (NASDAQ: DSGR)
Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.
Distribution Solutions reported revenues of $480.5 million, up 18.6% year on year. This print topped analysts’ expectations by 3.6%. It was a strong quarter as it also produced an impressive beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $27.60.
Read our full, actionable report on Distribution Solutions here, it’s free.
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