By: Jake Levinson 

GWW was one of the biggest industrial turnaround stories last year, with the stock outperforming the sector by 35% in what was an overall terrible year. Expectations have certainly ratcheted higher after a string of solid prints last year, which likely helps explain today’s stock weakness on a (2nd consecutive) messy quarter. Core growth of 6% was broad-based across end-markets, and follows solid top-line results from MRO distro peers (FAST +13%, MSM +6%). EPS, however, was a low quality “beat”, with a margin miss (up 50 bps but below consensus) offset by large belowthe-line tailwinds. That said, progress in turnaround stories is rarely linear

GWW Report Here