Why Did W.W. Grainger Move Higher on April 19?



W.W. Grainger

W.W. Grainger (GWW), which is an industrial supplier and equipment provider, was among the S&P 500’s top gainers on April 19. After a brief pullback last week, W.W. Grainger started this week on a mixed note and consolidated in the first three trading days. W.W. Grainger opened higher on Thursday and surged to record high price levels.

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Strong earnings report

The buying pressure in W.W. Grainger increased on Thursday following the release of its stronger-than-expected 1Q18 earnings report. W.W. Grainger’s EPS (earnings per share) in 1Q18 was $4.18—a strong increase from $2.88 reported in the same period last year. The EPS was also higher than analysts’ forecast of $3.42. In 1Q18, management reported a net income of $240.79 million—31.7% growth compared to $182.85 million reported in 1Q17.

The revenues in 1Q18 grew 9.1% year-over-year and surged to $2.77 billion—better than analysts’ forecast of $2.71 billion. Regarding the outlook, management expects the EPS in fiscal 2018 to be $14.30–$15.30, which is better than analysts’ forecast of $13.82.

On April 19, W.W. Grainger gained 5.3% to $299.88. W.W. Grainger is part of the S&P 500 industrials sector, which declined 0.29% on Thursday.

Next, we’ll discuss the S&P 500’s top losses on April 19.


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