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MSM

MSC Industrial Direct Co Inc Reports Strong Q2 Results

MSC Industrial Supply said fiscal second-quarter net sales rose to $917.8 million, up 2.9% from $891.7 million a year earlier, while year-to-date sales increased 3.5% to $1.88 billion from $1.82 billion.

Operating income climbed to $64.8 million from $62.2 million, a 4.1% increase, and operating margin edged up to 7.1% from 7.0%. On an adjusted basis, operating income rose to $69.1 million from $63.7 million, up 8.5%, and adjusted operating margin improved to 7.5% from 7.1%.

Net income attributable to MSC increased to $42.5 million from $39.3 million, up 8.1%. Diluted earnings per share rose to $0.76 from $0.70. Adjusted net income attributable to MSC advanced to $45.8 million from $40.4 million, up 13.4%, and adjusted diluted EPS increased to $0.82 from $0.72.

For the first half, net income attributable to MSC rose 9.7% to $94.3 million from $85.9 million, while diluted EPS increased to $1.69 from $1.54. Adjusted net income for the year to date climbed 14.1% to $101.3 million from $88.8 million, and adjusted diluted EPS increased to $1.81 from $1.59.

Management said the company’s second-quarter operating margin expanded for a second straight quarter. It also said core customer daily sales outperformed total company sales for a third consecutive quarter, even though volumes had not yet turned positive.

For the fiscal third quarter, MSC forecast average daily sales growth of 5% to 7% and adjusted operating margin of 9.7% to 10.3%. As a result of these announcements, the company's shares have moved -2.63% on the market, and are now trading at a price of $89.48. Check out the company's full 8-K submission here.

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