MSC Industrial Q3 Profit Tops View, Sales Miss; Sees Q4 Results Below View

(RTTNews) - MSC Industrial Supply Co. (MSM) Wednesday reported that its third-quarter net income grew 2.3 percent to $64.8 million from $63.3 million last year. Earnings per share were $1.05, 1.9 percent from $1.03 last year.

On average, 13 analysts polled by Thomson Reuters expected earnings of $1 per share. Analysts' estimates typically exclude special items.

Net sales of $727.5 million, meanwhile, declined 2.4% from prior year's $745.5 million. Analysts were looking for sales of $734.18 million.

Gross margin of 45.0% remained stable in a challenging economic environment

Based on current market conditions, the company expects earnings per share for the fourth quarter to be between $0.96 and $1.00, and net sales between $730 million and $742 million. At the midpoint, average daily sales are expected to decline approximately 5%.

Analysts expect earnings of $1.02 per share on sales of $757.56 million for the fourth quarter.

Fiscal 2016 is a 53-week year for MSC and the Company's fiscal fourth quarter has an additional week. This guidance reflects the additional week in the fourth quarter, and typical seasonal patterns in sales and margins.