While the bad winter weather early this year certainly had an impact
on some businesses, it doesn't seem to have hurt the industrial
distribution businesses as much feared. MSC Industrial (MSM) didn't see the same level of growth in its most recent quarter that HD Supply (HDS)
did, and the company did miss the published average sell-side revenue
target, but many analysts had this stock's earnings pegged as a likely
disappointment.
Instead of disappointing the Street, MSC
Industrial gave a relatively encouraging update regarding the U.S.
manufacturing sector and its business. Business still is far from
rampant recovery levels, but the company's efforts to add sales
associates and SKUs seem to be progressing on plan, as is the
integration of the large BDNA deal. The expected returns here are
looking increasingly ordinary, though, so I can't really pound the table
as hard on this stock today as in past articles.
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MSC Industrial Continues To See An Early Cyclical Recovery
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