Core Insights - Graco Inc. reported its annual results on the 28th, experiencing a pre-market decline of 7% but ultimately closing the session down by 2.8% [1] Company Performance - The market reaction to Graco's annual results was negative, with a significant drop in pre-market trading followed by a slight recovery during the session [1] Investment Perspective - The analysis emphasizes the search for high-quality businesses to build a long-term portfolio that can outperform the market [1]

Core Insights - Graco, Inc. reported disappointing fourth quarter results for fiscal 2024, leading to a mid-single digit decline in stock price, although it later recovered during trading [1]. Company Performance - The fourth quarter results for Graco, Inc. were below expectations, causing a negative reaction in the stock market [1]. Market Reaction - Following the earnings release, Graco's stock experienced a decline in the mid-single digits but managed to recover during the trading session [1].

Financial Data and Key Metrics Changes - Graco reported fourth quarter sales of $549 million, a decrease of 3% from the same quarter last year, with acquisitions contributing 3% sales growth [5] - Reported net earnings decreased 1% to $109 million for the quarter, or $0.63 per diluted share, while adjusted non-GAAP net earnings were $110 million or $0.64 per diluted share, a decrease of 20% [6] - The gross margin rate decreased by 200 basis points, leading to an operating margin rate of 24% compared to 30% for the same quarter last year [10] - Cash provided by operations totaled $622 million for the year, a decrease of $29 million from last year, with cash provided by operations as a percent of reported net earnings at 128% for the year [11] Business Line Data and Key Metrics Changes - Contractor segment revenue declined 3% for the quarter and was down 1% for the year, primarily due to softness in the U.S. housing and remodeling markets [25] - Industrial segment revenue declined 13% for the quarter and was down 6% for the full year, with significant weakness in China impacting key end markets [27] - Process segment sales improved during the quarter, with growth across major project categories, including vehicle service and industrial lubrication [21] Market Data and Key Metrics Changes - Sales in the semiconductor markets continued to decline globally, although there was growth in North America during the quarter [22] - The container market showed improvement throughout the year in Asia Pacific, contributing to growth in Protective Coatings activities [22] - The overall business landscape remained soft across many end markets, particularly in China and the semiconductor sector [20] Company Strategy and Development Direction - The company moved to a global customer-centric operating structure effective January 1, 2025, resulting in a nonrecurring business reorganization charge of $8 million in the fourth quarter [14] - The new operating structure consists of three segments: Industrial, Expansion Markets, and Contractor, aimed at leveraging customer and channel synergies [15][16] - The company is focusing on M&A activities and exploring new markets, with an active pipeline for potential acquisitions [24][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism that the worst market conditions are behind them, anticipating low single-digit sales growth on an organic constant currency basis for 2025 [32] - The company expects to see incremental volume from new initiatives and pricing actions, contributing to strong incremental margins [24] - Management acknowledged ongoing challenges in certain markets but highlighted positive booking momentum and resilience in cash flow [32][31] Other Important Information - Significant year-to-date uses of cash included share repurchases, acquisitions, dividends, and capital expenditures, with total cash uses offset by share issuances [12] - The company expects capital expenditures to be approximately $50 million to $60 million as expansion projects are nearing completion [14] Q&A Session Summary Question: How did the quarter perform versus expectations, particularly in China and semiconductor markets? - Management noted that the Process division overperformed expectations, while Industrial and Contractor segments underperformed due to sharp declines in Asia Pacific and sluggish end markets [38][39] Question: How does Graco's concentrated manufacturing footprint affect tariff impacts? - Management indicated that they did not specifically factor tariffs into their pricing strategy but believe they can manage potential impacts effectively [44][46] Question: Can you clarify the outlook and order rates? - Management confirmed that order rates have been consistent, aligning with their low single-digit growth guidance for the year [50][66] Question: What are the expected savings from the reorganization? - Management stated that the reorganization savings of approximately $16 million should start being realized immediately, with benefits seen across all segments [60][62] Question: What is the expected contribution from Corob in 2025? - Management anticipates low single-digit growth from Corob, with expectations for it to be slightly accretive to EPS in 2026 [120][121]

Graco Inc.’s (GGG) fourth-quarter 2024 adjusted earnings of 64 cents per share missed the Zacks Consensus Estimate of 76 cents. The bottom line declined 20% year over year.The company’s net sales of $548.7 million missed the consensus estimate of $554 million. The top line fell 3% year over year due to lower demand in the Industrial segment.On a regional basis, quarterly sales generated from the Americas decreased 1% year over year. In Europe, the Middle East and Africa, sales decreased 2% year over year. S ...

Graco Inc. (GGG) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.79%. A quarter ago, it was expected that this company would post earnings of $0.76 per share when it actually produced earnings of $0.71, delivering a surprise of -6.58%.Over the last four quarters, the company has s ...

Exhibit 99.1 GRACO INC. P.O. Box 1441 Minneapolis, MN 55440-1441 NYSE: GGG FOR IMMEDIATE RELEASE: FOR FURTHER INFORMATION: $ in millions except per share amounts | | | | | Three Months | Ended | | | | | Twelve | Months Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Dec | 27, | Dec | 29, | % | | Dec | 27, | Dec | 29, | % | | | | | | 2024 | | 2023 | Change | | | 2024 | | 2023 | Change | | | Net Sales | | $ | 548.7 | $ | 566.6 | (3) | % | $ | 2,113.3 | $ ...

In its upcoming report, Graco Inc. (GGG) is predicted by Wall Street analysts to post quarterly earnings of $0.76 per share, reflecting a decline of 5% compared to the same period last year. Revenues are forecasted to be $552.15 million, representing a year-over-year decrease of 2.6%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Befo ...

It has been about a month since the last earnings report for Graco Inc. (GGG) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Graco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Graco’s Earnings Miss Estimates in Q3, Sales Decline 4% ...

Graco Inc.’s (GGG) financial stability is challenged by weakness in the Industrial and Process segments. Elevated costs are putting a strain on the bottom line.Headquartered in Minneapolis, MN, Graco engages in designing, manufacturing and marketing equipment and systems used to measure, move, control, spray and dispense fluid as well as powder materials. The company offers equipment solutions for tough-to-handle materials with high viscosities, abrasive or corrosive properties and multiple component materi ...

Graco Inc.’s (GGG) third-quarter 2024 adjusted earnings of 71 cents per share missed the Zacks Consensus Estimate of 76 cents. The bottom line declined 8% year over year.The company’s net sales of $519.2 million missed the consensus estimate of $535 million. The top line fell 4% year over year due to lower demand in all the segments.On a regional basis, quarterly sales generated from the Americas increased 1% year over year. In Europe, the Middle East and Africa, sales decreased 2% year over year. Sales fro ...