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 ...

Core Insights - Graco's third-quarter 2024 adjusted earnings of 71 cents per share missed the Zacks Consensus Estimate of 76 cents, representing an 8% decline year over year [2] - Net sales for the quarter were $519.2 million, falling short of the consensus estimate of $535 million, and decreased by 4% year over year due to lower demand across all segments [2] Sales Performance - Sales in the Americas increased by 1% year over year, while sales in Europe, the Middle East, and Africa decreased by 2%, and sales from the Asia Pacific region saw a significant decline of 21% year over year [3] - The Industrial segment reported net sales of $156.3 million, contributing 30.1% of total sales, down 1% year over year [4] - The Process segment's net sales were $120.6 million, accounting for 23.2% of total sales, down 12% year over year [4] - The Contractor segment generated net sales of $242.3 million, contributing 46.7% of total sales, also down 1% year over year [5] Margin and Income Analysis - Graco's cost of sales decreased by 4.7% year over year to $243.1 million, while gross profit fell by 3% to $276.1 million, with a slight increase in gross margin by 0.5 percentage points [6] - Operating income decreased by 10.7% year over year to $145.7 million, with the operating margin declining by 2.1 percentage points [7] Financial Position - As of the end of the third quarter, Graco had cash and cash equivalents of $764.5 million, up from $538 million at the end of 2023 [8] - The company generated net cash of $436.5 million from operating activities in the first nine months of 2024, compared to $491.4 million in the same period last year [8] - Graco paid out dividends totaling $129 million in the first nine months of the year, an increase of 8.7% from the previous year [9] Future Outlook - The company anticipates organic net sales to decline in the low single-digits on a constant-currency basis in 2024 [11] - There has been a downward trend in fresh estimates for the stock, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [12][14]

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 ...

Core Insights - Graco Inc. reported third-quarter 2024 adjusted earnings of 71 cents per share, missing the Zacks Consensus Estimate of 76 cents, representing an 8% decline year over year [1] - The company's net sales were $519.2 million, falling short of the consensus estimate of $535 million, and decreased by 4% year over year due to lower demand across all segments [1] - Regional sales showed mixed results, with a 1% increase in the Americas, a 2% decrease in Europe, the Middle East, and Africa, and a significant 21% decline in the Asia Pacific [1] Segmental Performance - The Industrial segment generated net sales of $156.3 million, accounting for 30.1% of total sales, down 1% year over year, with foreign exchange issues impacting sales [2] - The Process segment reported net sales of $120.6 million, contributing 23.2% to total sales, down 12% year over year, with core sales also declining by 12% [2] - The Contractor segment achieved net sales of $242.3 million, making up 46.7% of total sales, down 1% year over year, although core sales increased by 1% [2] Margin Analysis - Graco's cost of sales decreased by 4.7% year over year to $243.1 million, while gross profit fell by 3% to $276.1 million, with a slight margin increase of 0.5 percentage points due to favorable pricing [3] - Operating income decreased by 10.7% year over year to $145.7 million, and the operating margin fell by 2.1 percentage points compared to the previous year [3] - Interest expenses were reduced to $0.7 million from $1.4 million in the prior year, and the adjusted effective tax rate was 19.2%, slightly down from 19.6% year over year [3] Financial Position - As of the end of the third quarter, Graco had cash and cash equivalents of $764.5 million, an increase from $538 million at the end of 2023 [4] - The company generated net cash of $436.5 million from operating activities in the first nine months of 2024, compared to $491.4 million in the same period last year [4] - Capital expenditures for property, plant, and equipment totaled $92.8 million, down from $145.6 million in the previous year, while dividends paid to shareholders increased by 8.7% to $129 million [4] Future Outlook - Graco anticipates organic net sales to decline in the low single-digits on a constant-currency basis for 2024 [5]

Core Insights - Graco Inc. reported a revenue of $519.21 million for the quarter ended September 2024, reflecting a 3.8% decline year-over-year and a surprise of -3.03% compared to the Zacks Consensus Estimate of $535.45 million [1] - The company's EPS was $0.71, down from $0.76 in the same quarter last year, resulting in an EPS surprise of -6.58% against the consensus estimate of $0.76 [1] Revenue Performance - Net Sales- Process: $120.62 million, which is -12.2% year-over-year and below the average estimate of $129.63 million [1] - Net Sales- Contractor: $242.30 million, a decrease of -1.2% year-over-year, compared to the average estimate of $254.93 million [1] - Net Sales- Industrial: $156.29 million, showing a slight decline of -0.5% year-over-year, exceeding the average estimate of $151.26 million [1] Operating Earnings - Operating earnings for Industrial were $52.36 million, surpassing the average estimate of $50.76 million [1] - Unallocated corporate expenses resulted in an operating loss of -$10.14 million, worse than the average estimate of -$8.59 million [1] - Operating earnings for Contractor were $71.05 million, below the average estimate of $81.85 million [1] - Operating earnings for Process were $32.45 million, also below the average estimate of $38.58 million [1] Stock Performance - Graco's shares have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Graco Inc. (GGG) came out with quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.58%. A quarter ago, it was expected that this company would post earnings of $0.76 per share when it actually produced earnings of $0.77, delivering a surprise of 1.32%.Over the last four quarters, the company has sur ...