Big player, Grainger, had its stocks crash to a 14 month low. This could be a big warning for other industrials.
Grainger (GWW) shares are plummeting Tuesday after issuing worse-than-expected first-quarter results and shrinking sales and earnings expectations for the year, the latest nuts-and-bolts warning for industrial and construction markets.
Earnings at the industrial-products supplier fell more than 9% to $2.88 a share as revenue notched up 1% to $2.54 billion, below Street expectations for $2.99 a share and $2.56 billion in sales.
A “stronger-than-anticipated customer response” to pricing actions in the U.S. weighed on results, said CEO D.G. Macpherson in the release.
“Based on the positive customer response thus far, we are pulling forward the remaining pricing actions originally scheduled for 2018 into the third quarter of this year,” he said in the statement. “This decision requires a significant change to our earnings per share guidance for the year but should enable us to accelerate growth with existing customers and attract new customers sooner than planned.”
Grainger plunged 11.4% to 197.57 in the stock market today, crashing to a 14-month low.
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