MSC Earnings: Softer End Market Demand and Execution Issues Weigh on Near-Term Results

MSC Industrial Direct’s fiscal third-quarter results (ended June 1) were in line with our expectations. Recall, on June 13, the company released preliminary third-quarter results and drastically cut fiscal 2024 financial guidance. Management’s prior guidance of 0%-5% average daily sales growth and 12.0%-12.8% adjusted operating margin was reduced to negative 4.3%-negative 4.7% revenue growth with a 10.5%-10.7% adjusted operating margin. See our June 14 analyst note for our commentary on third-quarter results and the change to 2024 guidance.