- Graco’s adjusted earnings per share (EPS) for the third quarter were $0.73, slightly missing the estimate of $0.74 despite a year-over-year (y/y) increase from $0.71.
- Net sales reached $543.4 million, a 4.7% increase y/y, but fell short of the market’s expected $559.5 million.
- Industrial sales, including intersegment contributions, were reported at $238.6 million, significantly exceeding the estimate of $214.2 million with a 53% y/y increase.
- Contractor net sales were $262.4 million, marking an 8.3% rise y/y, though slightly below the anticipated $271.3 million.
- The company experienced a 2% decline in organic revenue due to continued weaknesses in the global construction markets, notably in North America.
- CEO Mark Sheahan noted that while organic revenue is down 1% year-to-date because of persisting challenges in major markets, the company remains hopeful about positive trends heading into the fourth quarter.
- Stock recommendations for Graco currently include 5 buys and 7 holds, with no sells reported.
Graco Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have begun covering Graco Inc, the company known for its innovative solutions in fluid handling. In their recent report titled “Graco Inc.: Initiation of Coverage- Setting Its Sights on Housing Boom with High-Stakes Growth Bet!”, Baptista Research delves into Graco Inc‘s latest financial results. The report highlights a nuanced performance with a mix of positive and challenging developments. In the second quarter, Graco reported sales of $572 million, showing a 3% increase from the previous year. However, it’s noted that this growth was mainly fueled by acquisitions, contributing 6%, while organic sales saw a decline of 3%.
A look at Graco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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 leading provider of fluid management technology for industrial and commercial use, has an overall positive outlook based on the Smartkarma Smart Scores. With a respectable score in Value, indicating a fair valuation within the market, and solid scores in Dividend, Growth, and Momentum, Graco shows promising signs of stability and potential for expansion. Particularly noteworthy is its high Resilience score, suggesting a strong ability to weather market fluctuations. This reflects well on Graco’s position in providing essential systems for fluid handling across various sectors.
Graco Inc‘s emphasis on designing, manufacturing, and marketing systems for moving, measuring, and controlling fluid materials positions it as a key player in its industry. The company’s products cater to diverse applications such as paint and coating applications, high-pressure equipment cleaning, and vehicle maintenance. With solid scores across key factors, Graco Inc appears well-equipped to navigate long-term market dynamics and capitalize on growth opportunities in the fluid management sector, making it a notable company to watch in the coming years.
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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