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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $543.40 mln | $561.70 mln (10 Analysts) |
Q3 Adjusted EPS | Miss | $0.73 | $0.74 (10 Analysts) |
Q3 EPS | $0.82 | ||
Q3 Adjusted net earnings | Miss | $122.80 mln | $124.30 mln (8 Analysts) |
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
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(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.)