A Preview Of MSC Industrial Direct Co's Earnings
MSC Industrial Direct Co (NYSE:MSM) is set to give its latest quarterly earnings report on Wednesday, 2026-01-07. Here's what investors need to know before the announcement.
Analysts estimate that MSC Industrial Direct Co will report an earnings per share (EPS) of $0.95.
The market awaits MSC Industrial Direct Co's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
The company's EPS beat by $0.07 in the last quarter, leading to a 1.93% drop in the share price on the following day.
Here's a look at MSC Industrial Direct Co's past performance and the resulting price change:
| Quarter | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
| EPS Estimate | 1.02 | 1.03 | 0.72 | 0.73 |
| EPS Actual | 1.09 | 1.08 | 0.72 | 0.86 |
| Price Change % | -2.00 | -1.00 | -5.00 | 3.00 |
MSC Industrial Direct Co Share Price Analysis
Shares of MSC Industrial Direct Co were trading at $86.22 as of January 02. Over the last 52-week period, shares are up 4.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on MSC Industrial Direct Co
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MSC Industrial Direct Co.
Analysts have given MSC Industrial Direct Co a total of 2 ratings, with the consensus rating being Outperform. The average one-year price target is $94.5, indicating a potential 9.6% upside.
Peer Ratings Overview
The analysis below examines the analyst ratings and average 1-year price targets of Herc Holdings, Rush Enterprises and SiteOne Landscape Supply, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Herc Holdings, with an average 1-year price target of $165.0, suggesting a potential 91.37% upside.
- Analysts currently favor an Outperform trajectory for Rush Enterprises, with an average 1-year price target of $55.0, suggesting a potential 36.21% downside.
- Analysts currently favor an Neutral trajectory for SiteOne Landscape Supply, with an average 1-year price target of $137.33, suggesting a potential 59.28% upside.
Insights: Peer Analysis
Within the peer analysis summary, vital metrics for Herc Holdings, Rush Enterprises and SiteOne Landscape Supply are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| MSC Industrial Direct Co | Outperform | 2.72% | $394.98M | 4.10% |
| Herc Holdings | Buy | 35.23% | $446M | 1.56% |
| Rush Enterprises | Outperform | -0.81% | $374.75M | 3.05% |
| SiteOne Landscape Supply | Neutral | 4.09% | $437.20M | 3.55% |
Key Takeaway:
MSC Industrial Direct Co ranks at the bottom for Revenue Growth among its peers, with the lowest percentage. In terms of Gross Profit, it is at the top with the highest amount. For Return on Equity, it is in the middle compared to its peers. Overall, MSC Industrial Direct Co shows strong performance in Gross Profit but lags behind in Revenue Growth.
Delving into MSC Industrial Direct Co's Background
Founded in 1941, MSC Industrial Direct originally manufactured and sold cutting tools to metalworking shops in New York. Through a series of acquisitions and organic expansions, MSC has grown into an industrial distribution powerhouse with a focus on specialized metalworking products and services. The firm also distributes a wide breadth of maintenance, repair, and operations (MRO) supplies. MSC primarily operates within North America where it derives over 95% of its revenue.
MSC Industrial Direct Co: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, MSC Industrial Direct Co showcased positive performance, achieving a revenue growth rate of 2.72% as of 31 August, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: MSC Industrial Direct Co's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.78%, the company may face hurdles in effective cost management.
Return on Equity (ROE): MSC Industrial Direct Co's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.1%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): MSC Industrial Direct Co's ROA stands out, surpassing industry averages. With an impressive ROA of 2.29%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.39, MSC Industrial Direct Co adopts a prudent financial strategy, indicating a balanced approach to debt management.
This article was generated by Benzinga's automated content engine and reviewed by an editor.