W.W. Grainger Tops Street; Stock Falls

CHICAGO (TheStreet) -- Even as the broader market surged on positive-seeming earnings reports from bellwether comnpanies, industrial supplies manufacturer W.W. Grainger(GWW Quote) saw its share price slide Wednesday after issuing its own third-quarter financial results.

Though the company's bottom line bested Wall Street expectations by a substantial margin, investors evidently chose to focus on revenue that came in flat with targets and on a cautious outlook issued by Grainger executives.

Shares of the industrial cleaning supplies maker fell 1.6%, or $1.57, to $92.96 on heavy volume Wednesday.

As corporate executives are wont to do during times of sluggish business, Grainger chief James Ryan, in the quarterly earnings release, plugged the company's "relentless focus on exceptional customer service."

But when looking ahead, Ryan dispensed with the cant and expressed wariness. "While daily sales remain stable, we are not yet seeing a catalyst for a sustained economic turnaround in any of our major end markets," he said in the prepared statement.

He added that comparisons to the year-ago quarter will improve in the fourth period, but he wasn't more specific. "We will continue to focus on what we can control. With the investments we have made, we remain in a great position as the economy recovers."

Investors are eager this earnings season to focus on top-line numbers as a way to gauge whether an economic recovery has truly taken hold, and whether individual companies are benefiting from that rebound. Grainger's revenue was in-line with expectations, falling 13.5% from a year ago to $1.59 billion. Analysts were looking for $1.6 billion.