Overview

• Graco Q3 revenue grows 5% but misses analyst expectations

• Adjusted EPS for Q3 misses analyst expectations

• Organic revenue declined due to softness in global construction markets

Outlook

• Graco expects low single-digit sales growth for the full year on an organic, constant currency basis

• Company sees steady order rates and momentum in pricing actions

• Graco enters favorable year-over-year comparison period within Contractor segment

Result Drivers

• ACQUISITIONS - Incremental sales from acquired operations contributed 6 percentage points of sales growth

• PRICING ACTIONS - Strategic pricing actions began to gain traction, improving margin performance

• MARKET EXPANSION - Encouraging growth in select end markets and geographies, particularly in Industrial and Expansion Markets segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Graco Inc is $91.00, about 7.8% above its October 21 closing price of $83.86

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBw8f9mKba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)