Industrial and commercial distributor Global Industrial (NYSE:GIC) will be reporting earnings this Tuesday after market hours. Here’s what to look for.
Global Industrial beat analysts’ revenue expectations last quarter, reporting revenues of $386.6 million, up 7.7% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates.
Is Global Industrial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Global Industrial’s revenue to grow 9% year on year, improving from the 3.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Global Industrial has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Global Industrial’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 5.1%, and Fastenal reported revenues up 15.5%, topping estimates by 1%. WESCO traded down 1.2% following the results while Fastenal was also down 2%.
Read our full analysis of WESCO’s results here and Fastenal’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the maintenance and repair distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Global Industrial’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $40.50 (compared to the current share price of $43.40).
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