Benzinga | Dec 22, 2021 08:03AM EST

MSC Industrial Direct Q1 Results Beat Estimates, Clocks 10% Sales Growth

* MSC Industrial Direct Co Inc (NYSE:MSM) reported first-quarter FY22 sales growth of 9.9% year-over-year to $848.5 million, beating the consensus of $838.97 million.

* The company recorded average daily sales growth of nearly 500 bps above the Industrial Production Index.

* Adjusted EPS increased 12.6% Y/Y to $1.25, beating the consensus of $1.19.

* The gross margin contracted by 33 bps to 41.6%. Income from operations increased 68.3% Y/Y to $90.73 million, and margin expanded by 371 bps to 10.7%, while adjusted operating margin expanded by 30 bps to 11.3%.

* MSC Industrial generated cash from operating activities of $57.8 million, compared to $103.23 million a year ago. It held cash and equivalents of $62.9 million as of November 27, 2021.

* "We expect gross margins to bounce back in our fiscal second quarter and we expect to achieve our goal of keeping gross margins roughly flat for the full year," said CEO Erik Gershwind.

* Price Action: MSM shares closed higher by 1.82% at $83.97 on Tuesday.