Can Grainger Q4 Earnings Beat on Solid Organic Growth Across Segments?

W.W. Grainger, Inc. GWW is scheduled to report fourth-quarter 2024 results on Jan. 31, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for GWW’s revenues is pegged at $4.23 billion, indicating 5.9% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $9.75 per share. The consensus estimate for GWW’s earnings has moved up 0.2% in the past 60 days. The estimate indicates year-over-year growth of 17.1%.  Image Source: Zacks Investment Research GWW’s Earnings Surprise HistoryGrainger’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 1.2%.  Image Source: Zacks Investment Research What the Zacks Model Unveils for GraingerOur model predicts an earnings beat for Grainger this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below.You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: Grainger has an Earnings ESP of +0.59%.Zacks Rank: GWW currently carries a Zacks Rank of 3.Factors Likely to Have Shaped GWW’s Q4 PerformanceGrainger has been witnessing strong growth in core product sales for the past few quarters.GWW has been focusing on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities and executing improvement initiatives within its supply chain. These factors are likely to have contributed to its quarterly performance. We expect organic daily sales growth of 4.1%.The company’s High-Touch Solutions North America segment is expected to have benefited from strength in commercial, transportation and heavy manufacturing; strong revenue growth across its North America regions; and an expansion in the number of large and midsize customers. Our model projects quarterly organic daily sales growth of 5% from the year-ago quarter's reported level.Grainger has been witnessing market-beating growth in the High-Touch Solutions segment compared with the U.S. MRO (maintenance, repair and operating) market. This outperformance can be attributed to strategic activities, such as building advantaged MRO solutions, delivering unparalleled customer services, and offering differentiated sales and services.We expect the segment’s revenues to be $3.36 billion for the fourth quarter, up 4.6% from the fourth-quarter 2023 reported level.GWW’s Endless Assortment segment is likely to have benefited from robust customer acquisition and repeat business. Our model predicts quarterly organic daily sales to grow 8.7% from the prior-year reported level.Customer growth at MonotaRO is expected to have positively impacted the segment’s revenues. Our model predicts the Endless Assortment segment’s revenues to be $770 million, up 8.7% from the prior-year quarter’s reported figure.However, GWW has been witnessing elevated material and freight costs for some time. This, coupled with higher operating costs and incremental SG&A costs due to higher technology investments, is likely to have negatively impacted its margins.Grainger Stock’s Price PerformanceGrainger's shares have gained 24.7% in a year compared with the industry’s 8.6% growth.  Image Source: Zacks Investment Research Other Stocks to ConsiderHere are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.Flowserve Corporation FLS is expected to release its fourth-quarter 2024 results soon. It has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for FLS’s earnings is pegged at 77 cents per share, which indicates year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 10.8%.Northwest Pipe Company NWPX, expected to release its fourth-quarter 2024 soon, has an Earnings ESP of +9.49% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for Northwest Pipe’s fourth-quarter 2024 earnings is pegged at 91 cents per share, suggesting year-over-year growth of 68.5%. It has a trailing four-quarter average surprise of 32.4%.Allegion plc ALLE, expected to release earnings soon, currently has an Earnings ESP of +1.34% and a Zacks Rank of 3.The consensus estimate for Allegion’s earnings for the fourth quarter of 2024 is pegged at $1.74 per share, indicating year-over-year growth of 3.6%. ALLE has a trailing four-quarter average surprise of 9.9%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowserve Corporation (FLS): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Northwest Pipe Company (NWPX): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks