October 16, 2012 at 09:30 AM EDT
W.W. Grainger Cuts Revenue Forecast as Q3 Earnings Miss Estimates; Shares Tumble (GWW)

Facilities maintenance giant W.W. Grainger, Inc. (GWW) on Tuesday posted disappointing third quarter earnings and slightly cut its full-year revenue outlook, sending its shares plunging in premarket trading.

The Lake Forest, IL-based company reported third quarter net income of $155 million, or $2.15 per share, compared with $182 million, or $2.51 per share, in the year-ago period. Excluding special items, adjusted profit was $2.81 per share.

Revenue rose 10% from last year to $2.3 billion.

On average, Wall Street analysts expected a higher profit of $2.89 per share, on larger revenue of $2.32 billion.

Looking ahead, GWW cut its full-year 2012 sales growth forecast to a range of +11% to +12%. It had previously expected growth in the range of 12% to 14%. The company left its 2012 EPS outlook unchanged at $10.50 to $10.80. Analysts currently expect earnings of $10.62 per share for the year.

W.W. Grainger shares fell $10.91, or -5%, in premarket trading Tuesday.

The Bottom Line
Shares of W.W. Grainger (GWW) have a 1.48% dividend yield, based on last night’s closing stock price of $215.86. The stock has technical support in the $200-$203 price area. The stock is trading near all-time highs of $220 a share.

W.W. Grainger, Inc. (GWW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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