NEW YORK (TheStreet) -- Shares of MSC Industrial Direct Co. (MSM - Get Report) closed lower by 1.57% to $73.17 on heavy trading volume Wednesday, following the release of the company's 2016 fiscal second quarter results.

Before today's market open, the Melville, NY-based distributor of industrial tools and supplies reported adjusted earnings of 80 cents per diluted share, topping analysts' estimates of 78 cents per share.

Revenue declined by 3.2% to $684.1 million year-over-year and was below Wall Street's expectations of $686.7 million.

"The market environment during our fiscal second quarter remained challenging, consistent with continued low levels of demand in the industrial economy and particularly in metalworking and heavy manufacturing," CEO Erik Gershwind said in a statement.

For the third quarter, MSC Industrial expects revenue between $729 million and $741 million, missing analysts' projections for revenue of $744.3 million.

The company forecasts earnings per diluted share for the current quarter of 98 cents to $1.02, in line with expectations. Analysts are looking for earnings of 99 cents per share.

About 1.25 million of the company's shares changed hands today, well above its average volume of 510,394 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted our rating are mixed.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations.

However, the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MSM