Upcoming AWS Coverage on Fastenal Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 13, 2017 / Active Wall St. announces its post-earnings coverage on MSC Industrial Direct Co., Inc. (NYSE: MSM). The Company posted its first quarter fiscal 2017 results on January 11, 2017. The distributor of industrial tools and supplies posted a decline in sales and net income, but these still came in above market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of MSC Industrial Direct's competitors within the Industrial Equipment Wholesale space, Fastenal Co. (NASDAQ: FAST), announced on January 03, 2017, that it will report its 2016 annual and fourth quarter results on Wednesday, January 18, 2017 at 9:00 a.m. CT. AWS will be initiating a research report on Fastenal in the coming days.

Today, AWS is promoting its earnings coverage on MSM; touching on FAST. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=MSM

http://www.activewallst.com/registration-3/?symbol=FAST

Earnings Reviewed

For the three months ended December 3rd, 2016, MSC Industrial reported net sales of $686.3 million, a decline of 2.9% compared to net sales of $706.8 million in the year earlier same quarter. The Company's revenue number topped analysts' forecasts of $685.1 million. During the reported quarter, MSC Industrial's average daily sales (ADS) declined by 2.9% versus last year, with its sales to manufacturers being down 4.2%; however, Q1 FY17 ADS was better than the Company's guidance midpoint of minus 3.5% and also better sequentially as Q4 FY16 ADS was minus 3.6%.

During Q1 FY17, MSC Industrial recorded gross margin of 45%, in-line with the midpoint of the Company's guidance and down slightly from the 45.1% delivered in Q1 FY16. During the reported quarter, MSC Industrial's operating margin was 13.2%, increased on a y-o-y basis, despite a decline in net sales.

For Q1 FY17, MSC Industrial reported net income of $54.10 million or $0.95 diluted earnings per share, compared to net income of $55.03 million, or $0.89 diluted earnings per share, in Q1 FY16. The Company's diluted earnings per share was $0.03 above the midpoint of guidance, with approximately $0.0 2 per share gain from higher than expected sales and the remainder as a result of tight expense management. The Company's earnings increased $0.06 per share on a y-o-y basis due to lower operating expenses and share buyback in August 2016. The earnings results also surpassed Wall Street's expectations of $0.93per share.

Segment Results

During Q1 FY17, MSC Industrial stated that ecommerce reached 59.6% of sales, up from 59.1% in Q4 FY16 and 57% in Q1 FY16. The Company's sales to vending customers contributed roughly 60 basis points of growth in the reported quarter.

MSC Industrial also added approximately 10,000 net SKUs in Q1 FY17, bringing the Company's total active saleable SKU count to just over 1.5 million. By the end of FY17, MSC Industrial expects to add approximately 75,000 to 85,000 net SKUs, bringing total active saleable SKU count to around 1.6 million.

Balance Sheet

In Q1 FY17, MSC Industrial's Day Sales Outstanding (DSO) was 52.5 days, up roughly 1.5 days from Q1 FY16. Net cash provided by operating activities was $75 million in Q1 FY17 versus $122 million in Q1 FY16, mostly due to inventories and accounts receivables, which were an $11 million use of cash in Q1 FY17 versus a $26 million source of cash in Q1 FY16.

During Q1 FY17, MSC Industrial's capital expenditures totaled $12 million, down $3 million from Q1 FY16. The Company's free cash flow was $63 million versus $107 million in Q1 FY16. At the end of Q1 FY17, MSC Industrial had roughly $544 million in debt, mainly comprised of $166 million balance on its revolving credit facility, $175 million on term loan, and $175 million of private placement debt. The Company closed the quarter with $32 million in cash and cash equivalents.

Outlook

Based on current market conditions, MSC Industrial is forecasting net sales for Q2 FY17 to be between $688 million and $701 million. At the midpoint, ADS are expected to increase roughly 1.5% compared to Q2 FY17. The Company expects diluted earnings per share for Q2 FY17 to be in the band of $0.86 and $0.90.

Stock Performance

At the close of trading session on January 12th, 2017, the stock closed at $99.63, marginally up 0.19% from its previous closing price of $99.44. A total volume of 1.53 million shares have exchanged hands, which was higher than the 3-month average volume of 709.07 thousand shares. MSC Industrial Direct's stock price advanced 36.70% in the last three months, 37.64% in the past six months, and 71.31% in the previous twelve months. The Company's shares are trading at a PE ratio of 26.41 and have a dividend yield of 1.81%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street