Core Insights - Graco Inc. has struggled with operational performance, particularly in its Industrial segment, leading to investor disappointment [1] - The company anticipates a decline in organic net sales for 2024, primarily due to weak demand in its sealants and adhesives business [2] Operational Performance - The Industrial segment is facing softness, with a decline in demand for semiconductor, industrial lubrication, and process transfer equipment products [2] - Graco expects organic net sales to decline in the low single-digits on a constant-currency basis for 2024 [2] Cost Challenges - Selling, marketing, and distribution costs increased by 3.9% in 2023, while general and administrative expenses rose by 11.5% [3] - Operating expenses increased by 6% in 2023, driven by share-based compensation and higher product development spending [3] - In the first half of 2024, selling, marketing, and distribution costs, along with general and administrative expenses, continued to rise, increasing by 1.3% and 6.9% year over year, respectively [3] Foreign Currency Impact - Graco's international operations expose it to foreign currency risks, with a negative impact of 2% on revenues in the Asia Pacific region during the first half of 2024 [4] - The company faces uncertainties from geopolitical issues and unfavorable currency movements [4] Stock Performance - Graco currently holds a Zacks Rank 4 (Sell), with its stock gaining 14.1% over the past year, compared to the industry’s growth of 31.5% [4]

Graco Inc. (GGG) recently signed a definitive deal to purchase Corob S.p.A. for €230 million with additional contingent consideration of up to €30 million. Management expects the transaction to be completed in the fiscal fourth quarter, subject to the fulfillment of customary closing conditions. GGG's shares gained 2.3% yesterday to eventually close the trading session at $86.81. Inside the Headlines Based in San Felice sul Panaro, Italy, Corob is engaged in developing and manufacturing high-tech dispensing ...

Group 1: Organizational Restructuring - Graco Inc. plans to shift to a new organizational structure to enhance growth opportunities and operational efficiency, establishing a market-oriented global structure [1] - Effective January 1 next year, the company will reorganize into four business divisions: Industrial, Expansion Markets, Contractor, and Powder [2] - The new global Industrial Division will combine existing Industrial and Lubrication Equipment Divisions along with the Process Transfer Equipment business [3] Group 2: Business Segments - The Contractor Division will be reorganized to better serve global customer needs, while the Powder Division will maintain its current structure [4] - Starting January 2025, Graco will operate under three reportable segments: Contractor, Industrial, and Expansion Markets [5] Group 3: Financial Outlook - Graco anticipates new products in the Contractor segment to drive incremental sales in 2024, despite expecting organic revenues to decline in the low single digits compared to the previous year [7] - The Zacks Consensus Estimate for Graco's 2024 earnings per share has decreased by 1.7% to $2.98 over the past 60 days [7] Group 4: Market Performance - Graco's shares have seen a slight decline of 0.2%, closing at $83.71, while the company has gained 5.5% over the past three months, compared to the industry's 5.9% growth [1][6]

A Media Snippet accompanying this announcement is available by clicking on this link. ORLANDO, Fla., Sept. 06, 2024 (GLOBE NEWSWIRE) -- It's no secret that parents prioritize two things above all else: comfort and safety for their children. Finding the perfect balance is crucial, especially when it comes to car seats. As we approach Baby Safety Month, Graco® is reminding us of the importance of safety and thoughtful design. Their Graco ProtectPlus Engineered™ car seats undergo rigorous testing to ensure the ...

Graco Inc. (GGG) has failed to impress investors with its recent operational performance due to weakness across its businesses and high operational expenses. Based in Minneapolis, MN, Graco is engaged in designing, manufacturing and marketing equipment and systems 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 and abrasive or corrosive properties. Let's discuss the factors that contin ...

Graco Inc. (GGG) has recently completed the acquisition of the megasonic and ultrasonic wet cleaning systems business of PCT Systems ("PCT"). The financial terms of the transaction have been kept under wraps. Based in San Jose, CA, PCT specializes in designing and manufacturing a range of products, including heated process tanks, megasonic generators, transducer assemblies and custom tanks. These are crafted from stainless steel, plastics and quartz. It serves industries like semiconductors, optics, glass a ...

golero/E+ via Getty Images Thesis Graoo Inc. (NY SE: GGG) is an American industrial company that specializes in the development and manufacturing of fluid-handling systems and products. The company is shareholder-oriented and has a strong track record of growth and eash conversion. It has a competitive edge over its peers, which its superior margins show. It is a dominant player in a niche market, commanding a premium price. Taking into account its strong moat, consistent growth and shareholder focus, I ass ...

Graco Inc. (NYSE:GGG) Q2 2024 Earnings Conference Call July 25, 2024 11:00 AM ET Company Participants Christopher Knutson - EVP, Corporate Controller Mark Sheahan - President, CEO and Director David Lowe - CFO and Treasurer Conference Call Participants Deane Dray - RBC Capital Markets Mike Halloran - Baird Saree Boroditsky - Jefferies Bryan Blair - Oppenheimer Jeff Hammond - KeyBanc Capital Markets Joe Ritchie - Goldman Sachs Ross Sparenblek - William Blair Matt Summerville - D.A. Davidson Andrew Buscaglia ...

Net sales in the Industrial segment totaled $155.7 million (contributing to 28.1% of the quarter's sales), which decreased 5% year over year. Core sales decreased 4% year over year. Our estimate for segmental net sales was $158.0 million. Operating income increased 3% year over year to $161.4 million. The operating margin increased 1.1 percentage points from the year-ago quarter. Interest expenses in the second quarter totaled $0.6 million compared with $1.8 million reported in the previous year quarter. Th ...

For the quarter ended June 2024, Graco Inc. (GGG) reported revenue of $553.24 million, down 1.1% over the same period last year. EPS came in at $0.77, compared to $0.75 in the year-ago quarter. Shares of Graco have returned +3.4% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. The reported revenue compares to the Zacks Consensus Estimate of $561.23 million ...