Global Industrial Company (NYSE:GIC) Q3 Earnings Overview

• Global Industrial Company's NYSE:GIC Q3 earnings per share fell short of expectations, reporting $0.44 compared to the Zacks Consensus Estimate of $0.58.
• Revenue also missed forecasts, with the company posting $342.4 million against an expected $356.37 million.
• Despite a year-over-year decrease in net sales and net income, GIC declared a dividend of $0.25 per share.

Global Industrial Company (NYSE:GIC) recently announced its third-quarter earnings for 2024, revealing a profit of $0.44 per share. This fell short of the Zacks Consensus Estimate of $0.58 per share. The company also reported revenue of $342.4 million, which was below the expected $356.37 million. This performance marks a decline from the previous year's earnings of $0.54 per share for the same quarter.

During the Q3 2024 earnings conference call, key figures such as Richard Leeds, the Chairman and CEO, and Tex Clark, the Senior Vice President and CFO, discussed the company's financial performance. The call, moderated by Mike Smargiassi from The Plunkett Group, provided insights into the company's operations and future outlook. Despite the earnings miss, the company declared a dividend of $0.25 per share.

Year-over-year, GIC's net sales decreased from $354.6 million in Q3 2023 to $342.4 million in 2024. However, the gross profit remained stable at $116.3 million, with a slight increase in gross margin from 32.8% to 34.0%. Operating income from continuing operations fell from $28.2 million in 2023 to $22.2 million in 2024, resulting in a decrease in operating margin from 8.0% to 6.5%.

Net income from continuing operations also declined, dropping from $20.7 million in Q3 2023 to $16.8 million in 2024. This led to a decrease in net income per diluted share from $0.54 to $0.44. Despite these declines, for the nine months ending September 30, 2024, net sales increased to $1.013 billion from $954.2 million in the same period of 2023.

GIC's financial ratios provide further insight into its performance. The company has a price-to-earnings (P/E) ratio of approximately 19.30, indicating the price investors are willing to pay for each dollar of earnings. With a debt-to-equity ratio of about 0.16, GIC maintains a relatively low level of debt compared to its equity, and a current ratio of approximately 2.02 suggests a strong ability to cover short-term liabilities with short-term assets.