MSC Industrial Earnings Miss Estimates in Q2, Revenues Rise Y/Y

MSC Industrial Direct Company, Inc. MSM reported second-quarter fiscal 2026 (ended on Feb. 28, 2026) adjusted earnings per share (EPS) of 82 cents, missing the Zacks Consensus Estimate of 84 cents. The bottom line increased 13.9% year over year.

Including one-time items, the company reported an EPS of 76 cents compared with the year-ago quarter’s earnings of 70 cents.

MSC Industrial Direct Company, Inc. Price, Consensus and EPS Surprise

MSC Industrial Direct Company, Inc. price-consensus-eps-surprise-chart | MSC Industrial Direct Company, Inc. Quote

MSC Industrial generated revenues of around $918 million in the quarter under review, up 2.9% from $935 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $934 million.

MSC Industrial’s Q2 Margins Rise Y/Y

The cost of goods sold increased 2.6% year over year to $540 million. Gross profit moved up 3.4% to $378 million. The gross margin was 41.1% compared with the year-ago quarter’s 41%.

Operating expenses rose 2.9% year over year to $310 million in the fiscal second quarter. Adjusted operating income amounted to $69 million, up 8.5% from the prior-year quarter. The adjusted operating margin was 7.15% in the reported quarter compared with the prior-year quarter’s 7.1%.

MSM’s Cash & Debt Position

MSC Industrial had cash and cash equivalents of $46.2 million at the end of the fiscal second quarter of 2026 compared with $56 million at the end of fiscal 2025. It generated a cash flow from operating activities of $124 million in the first half of fiscal 2026 compared with $156 million in the first half of fiscal 2025.

The company’s long-term debt was $194.5 million at the end of the reported quarter, up from $169 million at the fiscal 2025 end.

MSC Industrial’s Q3 Guidance

MSM expects third-quarter fiscal 2025 average daily sales to grow 5-7% from the year-ago quarter's actual. The adjusted operating margin is expected between 9.7% and 10.3% for the quarter.

MSM Stock’s Price Performance

The company’s shares have gained 26.9% in the past year compared with the industry’s growth of 2.1%.

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MSC Industrial’s Zacks Rank

MSM currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Industrial Services Stocks Awaiting Results

W.W. Grainger, Inc. GWW is expected to release first-quarter 2025 results on May 7.

The Zacks Consensus Estimate for Grainger’s earnings per share is pegged at $10.17 for the fiscal first quarter, implying growth of 3.1% from the year-ago reported figure. The consensus estimate for Grainger’s total revenues is pinned at $4.5 billion, indicating a year-over-year increase of 6.1%

Hudson Technologies, Inc. HDSN is anticipated to release first-quarter 2025 results soon.

The Zacks Consensus Estimate for Hudson’s earnings per share is pegged at 5 cents for the first quarter, implying a decline of 16.7% from the year-ago reported figure. The consensus estimate for Hudson Industrial’s total revenues is pinned at $57 million, indicating a year-over-year increase of 3.1%.

SiteOne Landscape Supply, Inc. SITE is expected to release first-quarter 2025 results soon.

The Zacks Consensus Estimate for SiteOne Landscape Supply’s loss per share is pegged at 52 cents for the fiscal first quarter. The company reported a loss of 61 cents in the year-ago quarter. The consensus estimate for SiteOne Landscape Supply’s total revenues is pinned at $981 million, indicating a year-over-year increase of 4.3%

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This article originally published on Zacks Investment Research (zacks.com).

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