- Graco’s adjusted earnings per share (EPS) for Q3 were 71 cents, missing the estimate of 76 cents and also down from 76 cents year-over-year (y/y).
- Net sales totaled $519.2 million, a 3.8% decline compared to the previous year, and below the estimated $538.7 million.
- Industrial sales, including intersegment sales, were $156.3 million, which is a slight decrease of 0.5% y/y but exceeded the estimate of $152.5 million.
- Process net sales experienced a significant drop, recording $120.6 million, down 12% y/y, falling short of the $130.1 million estimate.
- Contractor net sales were $242.3 million, down by 1.2% y/y, and did not meet the projected $258.3 million.
- Despite the sales shortfalls, the company maintained its full-year revenue guidance, expecting a low single-digit decline on an organic, constant currency basis.
- The company noted that the demand decline was broad, with the Industrial and Process segments most impacted.
- Graco’s gross margin showed resilience, maintaining stability despite the reduced sales volume.
- Analysts’ recommendations for Graco stock include 3 buys, 8 holds, and 1 sell.
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A look at Graco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Graco Inc, a company specializing in fluid management technology for industrial and commercial use, has received favorable Smartkarma Smart Scores across various key factors. With solid scores in Resilience and Momentum, Graco is positioned well for long-term growth and stability. Its above-average score in Growth also indicates potential for expansion in the future, reflecting positively on its strategic direction.
While Graco Inc‘s Value and Dividend scores are more moderate, the company’s strong performance in Resilience and Momentum suggests a promising outlook. As a leading provider of fluid handling solutions, Graco’s innovative products cater to a wide range of applications, from paint and coating to vehicle maintenance. This diversification coupled with its robust Smart Scores positions Graco Inc favorably for sustained success in the fluid management industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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