MSC Industrial Supply Co. beat third-quarter expectations thanks to stronger online performance and growing demand for its on-site service programs, according to a full earnings call transcript posted by SeekingAlpha.com.
The industrial distributor reported $971.15 million in sales for the quarter, slightly below last year but ahead of analyst estimates. Profit came in at $1.08 per share on an adjusted basis — five cents higher than expected, though down from $1.33 a year earlier.
“This quarter reflects meaningful progress,” said CEO Erik Gershwind. “We’ve launched new growth efforts and continued to expand our customer service offerings.”
The company’s website, mscdirect.com, saw more traffic and better conversion rates. Visits rose by double digits from last year, and online sales improved compared to recent quarters. MSC also reported stronger returns from its digital marketing efforts, with results improving by about 20% from the prior quarter.
Its in-person service programs are also expanding. MSC now operates 399 on-site service locations and over 28,700 vending machines — increases of 23% and 9%, respectively, from last year. These programs now make up 40% of total sales.
While overall sales were slightly lower year-over-year, daily sales rose 7% from the previous quarter — stronger than MSC typically sees between Q2 and Q3. Finance chief Kristen Actis-Grande pointed to better pricing, recent acquisitions, and early savings from supply chain improvements.
Sales to government agencies grew 2.4% from last year, while core industrial customers and large national accounts dipped slightly. However, all customer groups posted gains over the previous quarter.
Tariffs remain a focus, with MSC positioning its U.S.-made products as a competitive advantage. “These items are outperforming company averages,” said President and COO Martina McIsaac.
The company also raised its full-year cash flow outlook and said it expects sales in the fourth quarter to be flat to slightly up compared to last year. Gershwind said MSC is making progress in key industries and remains optimistic despite some customer caution.
“We’re putting the pieces in place for long-term growth,” he said.
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