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 ...

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 ...

FORM 10-Q ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to GRACO INC. | --- | --- | |----------------------------------------------------------------------------|-------| | Minnesota | | | (State or other jurisdiction of incorporation or organization) | | 88 - 11th Avenue N.E. | --- | --- | --- | |------------------------------------------------------------------|--------------------------------------------------------|------------- ...

Graco Inc. (GGG) has been benefiting from improving order rates and product innovations. The company's handsome rewards to shareholders add to its appeal. Let us discuss the factors that should influence investors to retain the stock for the time being. Product Innovation: Graco remains focused on launching new products and upgrading the existing ones according to the industry trend. Regarding innovation, over the past year, the company introduced InvisiPac HM10, a hot melt adhesive dispense system, an elec ...

Graco Inc. (GGG) has been benefiting from product innovations and sound liquidity positions despite weakness in the Industrial segment and increasing costs. Growth Catalysts In the first quarter of 2024 and full year 2023, it spent $21.9 million and $83 million, respectively, for product developments. Despite the slow start to the year, the company expects improving order rates, coupled with product introductions to drive its performance in the upcoming quarters. Graco expects its new products, particularly ...

"Graco has been at the forefront of innovation in baby products for over 65 years. From inventing essential soothing items like the first baby swing, which was inspired by watching a mom soothe her baby, we understand that parents need thoughtful designs that help provide peace of mind," said Kerry Strzelecki, Vice President of Brand Management at Graco. "Our latest innovations, the SmartSense™ Soothing Bassinet and SmartSense™ Soothing Swing, exemplify our unwavering dedication to helping caregivers. With ...

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 Afr ...

Financial Data and Key Metrics Changes - Graco reported first quarter sales of $492 million, a decrease of 7% from the first quarter of last year [3] - Reported net earnings decreased 5% to $122 million or $0.71 per diluted share, while adjusted non-GAAP net earnings were $113 million or $0.65 per diluted share, a decrease of 12% [3] - Cash provided by operations totaled $119 million, an increase of $28 million from last year, driven mostly by favorable changes in working capital [5] - Operating margins declined by 260 basis points to 19.8% despite a gross margin rate increase of 30 basis points [16][17] Business Segment Data and Key Metrics Changes - The Contractor segment was down 6% against a strong first quarter comp last year, with EMEA showing strong performance [20] - The Industrial segment declined 5% during the quarter, with weakness in Asia Pacific construction markets [21] - The Process segment saw a 10% decrease in sales compared to the same quarter last year, despite operating earnings growing from 21% to 29% [22] Market Data and Key Metrics Changes - Consolidated backlog at the end of the quarter was $285 million, $5 million higher than at the beginning of the year but $65 million below the first quarter of last year [7] - Incoming order rates improved steadily throughout the quarter, indicating potential growth moving forward [8] - The semiconductor market remains challenging, with expectations of continued headwinds for the remainder of the year [10] Company Strategy and Development Direction - The company aims for low single-digit growth on an organic constant currency basis for the full year, reaffirming its revenue guidance despite the 7% revenue decline in the quarter [23] - New product launches, particularly in the Contractor segment, are expected to drive incremental sales [27][37] - The company is actively pursuing M&A opportunities, with a favorable market for deals anticipated [66][67] Management's Comments on Operating Environment and Future Outlook - Management noted a slow start to the year but expressed optimism due to improving order rates and new product launches [26][34] - The company is cautiously optimistic about the second half of the year, with expectations of improved performance in various segments [31][70] - Management highlighted the importance of customer feedback and market dynamics in shaping future strategies [27][34] Other Important Information - The gross margin rate improvement was attributed to strong price realization and lower product costs, despite unfavorable product and channel mix [16] - Significant cash uses included dividends of $43 million and capital expenditures of $37 million, with share issuances offsetting these uses [5] Q&A Session Summary Question: Can you provide context on the quarterly progression and confidence in guidance? - Management noted a slow start with January and February bookings down, but March showed improvement, leading to flat year-to-date orders [26] Question: How much can new products contribute in the second quarter? - Most new products are expected to launch in Q2, with positive feedback from customers indicating strong demand [35][37] Question: What drove the decline in Industrial margins? - The decline was attributed to product mix differences and increased product development spending in the first quarter [42] Question: What are the biggest swing factors in end markets? - The semiconductor market was identified as a negative factor, while the Contractor business showed stronger footing [52][70] Question: Is there a stocking effect expected with new product launches? - A slight stocking effect is anticipated, but management believes demand will remain strong without significant pullback later in the year [80]

For the quarter ended March 2024, Graco Inc. (GGG) reported revenue of $492.19 million, down 7.1% over the same period last year. EPS came in at $0.65, compared to $0.74 in the year-ago quarter.The reported revenue represents a surprise of -8.35% over the Zacks Consensus Estimate of $537.01 million. With the consensus EPS estimate being $0.74, the EPS surprise was -12.16%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...