- Graco recorded an Adjusted EPS of 65c in its first quarter, which was lower than the estimate of 74c, as well as lower than the previous year’s figure of 74c.
- The net sales for the company were reported at $492.2 million, marking a decline of 7.1% from the year before and falling short of the estimated $537.3 million.
- Graco’s industrial sales, inclusive of intersegments, were locked in at $142.0 million; this was a 5.5% decline year on year and less than the estimated $155.6 million.
- The company’s process net sales slid by 10% year on year to $120.2 million, falling short of the $138.4 million estimation.
- Contractor net sales at Graco were recorded at $230.0 million, down by 6.5% year on year and lower than the estimate of $250.2 million.
- The company is reaffirming its full-year revenue guidance of low single-digit growth on an organic, constant currency basis.
- Despite witnessing a slight improvement in gross margins, lower sales volumes impacted operating earnings negatively in the quarter.
- Despite a slow start to the year, the incoming order rates gained momentum as the quarter progressed.
- The current market sentiment for Graco is mixed with 3 buy ratings, 7 hold ratings, and 2 sell ratings.
A look at Graco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Graco Inc., a company specializing in fluid management technology for industrial and commercial purposes, has received varied Smart Scores indicating its long-term outlook. With a growth score of 4 and resilience and momentum scores also at 4, the company seems to be on a solid path for future expansion and adaptability in the market. Graco’s products cater to a wide range of applications, including painting, cleaning, and maintenance, showcasing its versatility and potential for sustained growth.
However, with value and dividend scores at 2, Graco Inc. may face challenges in terms of perceived value and dividend payouts. Investors may need to carefully evaluate these aspects before making investment decisions. Overall, Graco Inc.’s focus on innovation and market responsiveness, as indicated by its growth, resilience, and momentum scores, bodes well for its long-term prospects in the fluid management technology sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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