Grainger Revises Guidance; Q2 Profit Misses Estimates, Organic Sales Down 2%

(RTTNews) - Grainger (GWW) announced the company now expects sales growth of 1 to 4 percent and earnings per share of $11.20 to $12.20 for the year. The company's previous 2016 guidance, communicated on April 18, 2016, included sales growth of flat to 6 percent and earnings per share of $11.00 to $12.80. Analysts polled by Thomson Reuters expect the company to report profit per share of $11.94. Analysts' estimates typically exclude special items.

Excluding the special items in both years, second-quarter net earnings decreased 20 percent and earnings per share decreased 12 percent year-over-year. Earnings per share as adjusted was $2.89, for the period. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $3.17 for the quarter. Net earnings was $173 million compared to $221 million, last year. Earnings per share was $2.79 compared to $3.25.

Sales were $2.56 billion increased 2 percent versus $2.52 billion in the second quarter of 2015. Analysts expected revenue of $2.58 billion, for the quarter. Excluding the Cromwell acquisition, organic sales declined 2 percent driven by a 1 percentage point decrease in volume and a 1 percentage point reduction in price.