The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Distribution Solutions (NASDAQ:DSGR) and the rest of the maintenance and repair distributors stocks fared in Q2.

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 8 maintenance and repair distributors stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, maintenance and repair distributors stocks have held steady amidst all this with share prices up 2.2% on average since the latest earnings results.

Distribution Solutions (NASDAQ:DSGR)

Founded in 1952, Distribution Solutions (NASDAQ:DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Distribution Solutions reported revenues of $439.5 million, up 16.3% year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

Bryan King, CEO and Chairman of the Board, said, "Our strategic initiatives are on track, and I am pleased with DSG's quarterly results, marked by 16.3% revenue growth compared to last year and double-digit EBITDA margins of 10.3%. In addition, revenue and EBITDA in the second quarter improved sequentially due to acquisitions and improving performance in our existing businesses.

Distribution Solutions achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 11% since reporting and currently trades at $37.22.

Read our full report on Distribution Solutions here, it’s free.

Best Q2: 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 $445.6 million, up 4.1% year on year, outperforming analysts’ expectations by 2.7%. It was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.

DXP achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $55.00.

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

Weakest Q2: WESCO (NYSE:WCC)

Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

WESCO reported revenues of $5.48 billion, down 4.6% year on year, falling short of analysts’ expectations by 1.5%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

As expected, the stock is down 5.4% since the results and currently trades at $165.38.

Read our full analysis of WESCO’s results here.

MSC Industrial (NYSE:MSM)

Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE:MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

MSC Industrial reported revenues of $979.4 million, down 7.1% year on year, in line with analysts’ expectations. Revenue aside, it was a mixed quarter for the company with a narrow beat of analysts’ operating margin estimates.

MSC Industrial had the slowest revenue growth among its peers. The stock is up 5.2% since reporting and currently trades at $82.24.

Read our full, actionable report on MSC Industrial 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 $1.92 billion, up 1.8% year on year, in line with analysts’ expectations. Revenue aside, it was an ok quarter for the company with a narrow beat of analysts’ earnings estimates.

The stock is up 6.4% since reporting and currently trades at $68.28.

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

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