Saturday, April 12, 2014

Seeking Alpha: MSC Industrial Continues To See An Early Cyclical Recovery

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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