Earnings Preview: WW Grainger

With respect to earnings surprise, over the trailing four quarters, Grainger has consistently outperformed the respective Zacks Consensus Estimates. The average earnings surprise was 11.92%, implying that Grainger has outpaced the Zacks Consensus Estimate by the same magnitude over the last four quarters.

First Quarter Recap

Grainger’s fiscal first-quarter EPS jumped 58% from last year to a record $2.18, way ahead of the Zacks Consensus Estimate of $1.79. The impressive results were driven by expanding product lines, providing new services complementing Grainger’s products, investments in eCommerce and enhancement of sales force. These efforts have helped to gain market share in North America as well as penetration in the high growth, emerging markets.

Revenues in the quarter were $1,883.6 million, a rise of 12.6% from $1,672.3 million in the year-ago period and above the Zacks Consensus of $1,837 million. On a daily basis, sales increased 11% in the quarter with January, February and March posting increases of 10%, 11% and 12%, respectively.

Monthly Sales Performance Post First Quarter Results

Daily sales during April increased 14% compared with the same period last year. Excluding a 1% contribution each from acquisitions and foreign exchange, organic sales improved 12%. May sales growth of 11% was a deceleration from the 14% growth in the month of April. Excluding the impacts of acquisitions and foreign currency exchange rates, organic sales during the month increased 8%.

Looking Forward

Based on the upbeat first-quarter results, Grainger upped its fiscal 2011 guidance. The company now expects sales growth in the range of 7% to 10% compared with the prior guidance range of 5% to 9%. The company forecasts fiscal 2011 EPS to range between $8.10 and $8.60 in place of its prior expected range of $7.15 to $7.90.

Estimate Revision Trend  

For the second quarter, 4 of the 15 analysts covering Grainger have raised their estimates over the past 30 days. Only 1 analyst has raised the estimate over the past 7 days.

Estimated magnitude of the revisions

Over the past 90 days, earnings estimates for the second quarter rose 14 cents to $ 2.08. Over the last 30 days, earnings estimates for the second quarter of fiscal 2011 shows an increase to $ 2.09 USD. Finally, over the last 7 days, the estimate for the quarter also increased 2 cents to $ 2.11.

The Origin of Wesco International, Inc. | Wesco International, Inc ...

Wesco International is incorporated under the laws of State of Delaware and is headquartered in Pittsburgh, Pennsylvania. The Company was incorporated in the year 1993. The Company’s common stock is registered and listed on the New York Stock Exchange under the ticker “WCC”.

Wesco International is a large manufacturer of industrial and electrical maintenance, repair and operating (MRO) products, and electrical construction products. The Company operates primarily in North America.

Canada accounted for nearly 11% of the Company’s total sales in 2006 as compared with more than 86% contributed by the US. Wesco International have over 400 full service branch offices and seven distribution offices located in US, Canada, Gaum, Mexico, Nigeria, United Arab Emirates, the United Kingdom and Singapore. About 340 branches are based in the US followed by nearly 50 based in Canada. The Company caters to nearly 110,000 clients across the world and offers more than one million products from over 29,000 suppliers. In 2006, the Company’s top ten suppliers accounted for nearly 33% of its total purchases. Eaton Corporation was the largest supplier accounting for nearly 12% of the Company’s total purchases. Wesco’s distribution centers and branches stock over 250,000 unique SKUs. It utilizes highly automated electronic purchase and inventory management system.

Some of the products offered by the Company include:

• Electrical Supplies: Fuses, wiring devices, terminals, boxes, connectors, fittings, lugs, enclosures, tape, terminations, and marking and splicing equipment

• Industrial Supplies: Security and safety, testers and tools, fall and personal protection, fasteners, consumables, and janitorial

• Power Distribution: Transformers, circuit breakers, panel boards, switchboards, metering and busway products

• Lighting: Fixtures, lamps, lighting and ballasts control products

• Wire and Conduits

• Control, Motors and Automation: Drives, motor control devices, power and surge protection, timers, relays, and pushbuttons

• Data Communications: Low voltage systems, structured cabling systems, and specialty cable and wire products.

In addition to above products, the Company offers a broad array of services as well as procurement solutions such as national accounts and integrated supply programs.

Electrical review and western electrician with which is consolidated Electrocraft

Electrical review

Electrical West

Hoover's Handbook of American Business 2008

Telephony