Maintenance and Repair Distributors Stocks Q3 Teardown: Global Industrial (NYSE:GIC) Vs The Rest

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the maintenance and repair distributors industry, including Global Industrial (NYSE:GIC) and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 9 maintenance and repair distributors stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Weakest Q3: Global Industrial (NYSE:GIC)

Formerly known as Systemax, Global Industrial (NYSE:GIC) distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 11.1% since reporting and currently trades at $31.23.

Read our full report on Global Industrial here, it’s free.

Best Q3: VSE Corporation (NASDAQ:VSEC)

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

VSE Corporation reported revenues of $282.9 million, up 3.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $207.60.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free.

Fastenal (NASDAQ:FAST)

Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Fastenal reported revenues of $2.13 billion, up 11.7% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS in line with analysts’ estimates and a miss of analysts’ EBITDA estimates.

As expected, the stock is down 7.2% since the results and currently trades at $42.50.

Read our full analysis of Fastenal’s results here.

W.W. Grainger (NYSE:GWW)

Founded as a supplier of motors, W.W. Grainger (NYSE:GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.

W.W. Grainger reported revenues of $4.66 billion, up 6.1% year on year. This result was in line with analysts’ expectations. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.

The stock is up 9% since reporting and currently trades at $1,042.

Read our full, actionable report on W.W. Grainger here, it’s free.

DXP (NASDAQ:DXPE)

Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components.

DXP reported revenues of $513.7 million, up 8.6% year on year. This print topped analysts’ expectations by 3%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is down 7.1% since reporting and currently trades at $113.37.

Read our full, actionable report on DXP here, it’s free.

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