W. W. Grainger (NYSE: GWW) shares reached for the sky in early Friday trading, on reporting third-quarter results
Sales were $3.9 billion, up 16.9% on a reported and daily basis, and up 20.3% on a daily, constant currency basis, compared to the third quarter 2021, driven by strong performance in both the High-Touch Solutions N.A. and Endless Assortment segments.
Gross profit margin for the third quarter of 2022 was 38.5%, a 145-basis-point increase compared to the third quarter of 2021. The increase was driven by favorability in both segments.
Operating earnings for the third quarter of 2022 of $603 million were up 37.6% versus the third quarter of 2021.
Operating margin in the quarter of 15.3% increased 230 basis points over the third quarter of 2021 on stronger gross margins in both segments combined with 85 basis points of SG&A leverage gained on strong top-line growth.
Diluted earnings per share of $8.27 in the third quarter of 2022 increased 46.4% compared to the third quarter of 2021 due primarily to the strong operating performance.
"The third quarter performance reflects our focused execution against our long-term strategy and ability to serve customers well in this demand environment," said CEO D.G. Macpherson.
"Our teams are driving impressive results across both business segments and, after another quarter of strong performance, we are increasing our 2022 full year guidance. We remain on track to deliver an exceptional year."
GWW shares jumped $18.60, or 3.5%, to $556.27.
