Maintenance and Repair Distributors Stocks Q3 In Review: Global Industrial (NYSE:GIC) Vs Peers

December 09, 2024 at 01:48 AM EST

GIC Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how maintenance and repair distributors stocks fared in Q3, starting with Global Industrial (NYSE: GIC).

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 8 maintenance and repair distributors stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 7.7% on average 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 $342.4 million, down 3.4% year on year. This print fell short of analysts’ expectations by 3.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Richard Leeds, Executive Chairman of the Board and Interim Chief Executive Officer, said, "Third quarter results reflect a weak demand environment and continued softness in our core small and medium business customer base. Our strategic account business delivered another quarter of strong growth and customer retention rates remain healthy."

Unsurprisingly, the stock is down 16.8% since reporting and currently trades at $27.53.

Read our full report on Global Industrial here, it’s free.

Best Q3: 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 $472.9 million, up 12.8% year on year, outperforming analysts’ expectations by 6.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

DXP delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 51.2% since reporting. It currently trades at $76.98.

Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free.

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 $67.83 million, up 8% year on year, falling short of analysts’ expectations by 3.5%. 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 14.4% since the results and currently trades at $102.06.

Read our full analysis of Transcat’s results here.

Fastenal (NASDAQ: FAST)

Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Fastenal reported revenues of $1.91 billion, up 3.5% year on year. This print met analysts’ expectations. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ adjusted operating income estimates.

The stock is up 15.4% since reporting and currently trades at $80.75.

Read our full, actionable report on Fastenal here, it’s free.

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 $5.49 billion, down 2.7% year on year. This number was in line with analysts’ expectations. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.

The stock is up 16.2% since reporting and currently trades at $206.67.

Read our full, actionable report on WESCO here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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