UBS analyst Christopher Belfiore noted Grainger delivered volume improvement as pricing actions continued to drive demand, although there were lower government sales during June due to technical issues with government purchasing systems. The analyst expects margin pressures to persist throughout the second half of 2017 and although the quarter is ok, negative investor sentiment will continue to weigh on the shares. Belfiore maintained his Neutral rating and lowered his price target to $170 from $180 on Grainger shares.

W.W. Grainger's board of directors approved a quarterly cash dividend of $2.05 per share, an increase of 10% from the most recent company dividend of $1.86 per share. The dividend is payable on June 1, to shareholders of record on May 13. In addition, the board approved the repurchase of up to 5M shares of the company's outstanding common stock, replacing the company's existing repurchase authorization. The new repurchase authorization has no expiration date. "2024 is on track to be our 53rd consecutive year of increased dividends, upholding Grainger's long-standing commitment to our shareholders. This increase, together with our updated share repurchase authorization, reinforces our ability to continue investing in the business while also returning excess cash to shareholders," said D.G. Macpherson, Grainger CEO.