Graco (GGG) Q1 Earnings & Sales Miss Estimates, Decrease Y/Y

Zacks Equity Research

26 April 2024 at 12:46 pm·4-min read

Graco Inc. Price, Consensus and EPS Surprise

Graco Inc.’s GGG first-quarter 2024 adjusted earnings of 65 cents per share lagged the Zacks Consensus Estimate of 74 cents. The bottom line declined 12.2% year over year.

The company’s net sales of $492.2 million missed the consensus estimate of $535 million. The top line also decreased 7% year over year due to decreasing demand in the Industrial, Process and Contractor segments.

On a regional basis, quarterly sales generated from the Americas decreased 8% year over year. In Europe, the Middle East and Africa, sales increased 2% year over year. Sales from the Asia Pacific decreased 16% year over year.

Segmental Details

Revenues in the Industrial segment totaled $142 million (contributing to 28.9% of the quarter’s sales), decreasing 5% year over year. Our estimate for segmental revenues was $153.0 million. Core sales declined 5% year over year.

Revenues in the Process segment grossed $120 million (contributing to 24.4% of the quarter’s sales), decreasing 10% year over year. Our estimate for the segment’s revenues was $142.7 million. Core sales declined 10% year over year.

Revenues in the Contractor segment totaled $230 million (contributing to 46.7% of the quarter’s sales), down 6% year over year. Our estimate for segmental revenues was $241.3 million. Core sales declined 6% in the quarter.

Graco Inc. Price, Consensus and EPS Surprise

Graco Inc. price-consensus-eps-surprise-chart | Graco Inc. Quote

Margin Profile

In the first quarter, Graco’s cost of sales declined 7.6% year over year to $226 million. Gross profit decreased 6.6% to $266.2 million while the margin rose 0.3 percentage points. The favorable effects of realized pricing benefited the margin’s performance.

Operating income decreased 15% year over year to $133.0 million. The operating margin decreased 2.6 percentage points from the year-ago quarter. Interest expenses in the first quarter totaled $744 million compared with $1.3 billion reported in the previous year. The adjusted effective tax rate in the quarter was 19.8% while the same for the first quarter of 2023 was 19.5%.

Balance Sheet and Cash Flow

Exiting the first quarter, Graco had cash and cash equivalents of $622.7 million compared with $538 million at the end of 2023.

It generated net cash of $118.9 million from operating activities in the first three months of 2024 compared with $90.8 million generated in the year-ago period. Capital used for purchasing property, plant and equipment totaled $37.2 million compared with $38.3 million in the year-ago period.

GGG, carrying a current Zacks Rank #2 (Buy), paid out dividends worth $42.9 million to its shareholders in the first three months of 2024, up 8.7% from the previous year. It didn’t repurchase any common stocks in the first three months of 2024. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Outlook

The company expects low single-digit organic revenue growth on a constant-currency basis for 2024.

Performance of Other Industrial Companies

IDEX Corporation’s IEX first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.

In the quarter under review, IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.

A. O. Smith Corporation’s AOS first-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.

Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.

W.W. Grainger, Inc. GWW reported earnings per share of $9.62 in first-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.

Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

A. O. Smith Corporation (AOS) : Free Stock Analysis Report

W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

Graco Inc. (GGG) : Free Stock Analysis Report

IDEX Corporation (IEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The Smart Investor
4 Singapore Blue-Chip Stocks You Can Buy and Hold Forever
We highlight four solid blue-chip names that you can buy and safely own for the rest of your life. The post 4 Singapore Blue-Chip Stocks You Can Buy and Hold Forever appeared first on The Smart Investor.
The Telegraph
China’s gold-buying spree could be the straw that breaks the dollar’s back
Some commentators have spent decades predicting the imminent demise of the US dollar’s special status as the world’s international reserve currency.
Barrons.com
Palantir Earnings Crush Estimates. The Stock Still Slips Following Big Run.
Palantir followed up its “bombastic” December quarter with even better results for the March quarter as the data analytics software company continued to gain traction with its artificial intelligence tools in particular with U.S. commercial customers. Palantir shares, which rallied 8.1% in Monday’s regular session, was off about 4 % in after-hours trading. For the March quarter, Palantir posted revenue of $634 million, up 21% from a year ago, and ahead of both the company’s guidance range of $612 million to $616 million and Wall Street’s consensus of $615 million as tracked by FactSet.
Simply Wall St.
Is It Time To Consider Buying Hutchison Port Holdings Trust (SGX:NS8U)?
Hutchison Port Holdings Trust ( SGX:NS8U ), is not the largest company out there, but it received a lot of attention...
Moneywise
Arnold Schwarzenegger reveals how he made millions before becoming a movie star — and it wasn’t from bodybuilding
He owes it to one woman.
Fortune
$3 trillion could be injected into the U.S. economy without any federal spending by tweaking this corner of the mortgage market, ‘Oracle of Wall Street’ says
"Rarely have I seen such a true win-win scenario for the government, Wall Street and the U.S. consumer."
Yahoo Finance
Stock market today: Stocks climb as S&P 500 notches best 3-day run of 2024
Stocks rallied at the end of last week, getting a boost from a "Goldilocks" jobs report.
The Edge Singapore
Singapore reviewing proposal by SVCA to revive local stock market: FT
'There has been a shift in thinking by the government that this is not just an SGX problem'
Simply Wall St.
Palantir Technologies (NYSE:PLTR) Shareholders Will Want The ROCE Trajectory To Continue
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Reuters
Exclusive-Shell in talks to sell Malaysia fuel stations to Saudi Aramco, sources say
Energy giant Shell is in talks with Saudi Arabia's state-owned Saudi Aramco to sell its gas station business in Malaysia, the second-largest such network in the country, four industry sources aware of the discussions said, and a deal could be worth up to $1 billion. Shell declined to comment on the talks but said Malaysia is an important country to the company. Saudi Aramco also declined to comment.
Simply Wall St.
Here's Why We Think Microsoft (NASDAQ:MSFT) Might Deserve Your Attention Today
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Simply Wall St.
Is Thai Beverage Public Company Limited's (SGX:Y92) Recent Stock Performance Influenced By Its Financials In Any Way?
Thai Beverage's (SGX:Y92) stock is up by 3.2% over the past week. We wonder if and what role the company's financials...
Reuters
Gold gains on soft dollar, rate cut hopes
Gold prices climbed more than 1% on Monday, as the U.S. dollar weakened after softer-than-expected U.S. jobs data fueled expectations of potential interest rate cuts by the Federal Reserve later this year. Spot gold rose 1% to $2,324.94 per ounce by 2:00 p.m. ET (1800 GMT). "The downside that we've seen over the last few weeks might actually be running out of steam, opening (the) door for gold prices to resume their upward trajectory," said Daniel Ghali, commodity strategist at TD Securities.
Simply Wall St.
Meta Platforms Insiders Sell US$15m Of Stock, Possibly Signalling Caution
The fact that multiple Meta Platforms, Inc. ( NASDAQ:META ) insiders offloaded a considerable amount of shares over the...
Benzinga
Warren Buffett's Coca-Cola Turns Into Possible Value AI Play As It Commits $1.1 Billion To Using Microsoft's AI
The Coca-Cola Company (NYSE:KO) recently announced its five-year partnership with Microsoft, aiming to leverage Microsoft's cloud computing and artificial intelligence (AI) services. Coca-Cola Company committed $1.1 billion towards this partnership, granting them access to Microsoft Cloud and its advanced generative AI capabilities. "Through our long-term partnership, we have made significant progress to accelerate system-wide AI transformation across The Coca-Cola Company and its network of ind
Reuters
China home sales slump 47% over May Day holiday vs 2023
China's average daily home sales during the major May Day public holiday sank 47% from a year earlier, and were down around 30% from pre-pandemic levels in 2019 for the same holiday period, according to a private survey on Monday. Home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period of 2023, and were down more than 60% in mega cities of Guangzhou and Shanghai, according to data from the China Index Academy, one of the country's largest independent real estate researchers. "The new housing market is still under adjustment pressures," said the research firm, adding "there is more room for lowering the downpayment ratio, reducing mortgage interest rates and transaction taxes and fees."
GOBankingRates
8 Ways Middle-Class People Become Poor in Retirement
After working for most of your adult life, the last thing you want to do is stress about your finances and paying hefty bills in your golden years. You want to enjoy your retirement after committing...
Simply Wall St.
Accenture Insiders Sold US$1.2m Of Shares Suggesting Hesitancy
In the last year, many Accenture plc ( NYSE:ACN ) insiders sold a substantial stake in the company which may have...
Reuters
Oil steadies as ceasefire eludes Hamas, Israel
HOUSTON (Reuters) -Oil futures ended largely unchanged on Monday as a ceasefire agreement between Hamas and Israel continued to elude negotiators. Both crude oil benchmarks settled 37 cents, or 0.5%, higher with Brent crude futures at $83.33 a barrel and U.S. West Texas Intermediate crude futures (WTI) at $78.48 a barrel. Last week, both contracts posted their steepest weekly loss in three months, with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible timing of a Federal Reserve interest rate cut.
GOBankingRates
Robert Kiyosaki: ‘Buy Gold, Silver, Bitcoin While You Still Can’
Historically, investing in the stock market has yielded reliable returns. Particularly, investing in the S&P 500 has proven to be a reliable and rather safe investment that can yield significant...

Straits Times Index

Nikkei

Hang Seng

FTSE 100

Bitcoin USD

CMC Crypto 200

S&P 500

Dow

Nasdaq

Gold

Crude Oil

10-Yr Bond

FTSE Bursa Malaysia

Jakarta Composite Index

PSE Index