- Graco’s adjusted earnings per share (EPS) for the second quarter was 75 cents, missing the estimate of 79 cents and down from the previous year’s 77 cents.
- Net sales increased by 3.4% year-over-year to $571.8 million, though this was below the estimated $585.4 million.
- Industrial sales, including intersegment sales, rose dramatically by 56% year-over-year, reaching $242.3 million, surpassing both estimates of $202.6 million.
- Contractor net sales were $289.0 million, marking a 7.2% increase year-over-year, aligning closely with the estimate of $289 million.
- Graco is maintaining its 2025 revenue outlook for low single-digit sales growth on an organic constant-currency basis.
- The Contractor segment faced a decline in organic sales due to weaknesses in North American construction markets, limited investments by channel partners and contractors, and reduced foot traffic in home centers.
- Overall sales for the quarter rose by 3%, despite a 3% decline in organic revenue, largely impacted by lower sales in the Contractor segment.
- Graco’s President and CEO, Mark Sheahan, noted that component costs have risen due to new tariffs introduced this quarter.
- While the Americas faced a decline in organic revenue, there was growth in volume in the EMEA and Asia Pacific regions.
- Current market consensus includes 5 buy ratings, 7 hold ratings, and 1 sell rating.
A look at Graco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| 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 company that provides technology for fluid management in various industries, shows a mixed long-term outlook based on the Smartkarma Smart Scores. While the company scores moderately on value and dividend factors with a score of 2 each, it demonstrates potential for growth with a score of 3. The company’s high scores in resilience and momentum, with scores of 4 for both, indicate a strong ability to withstand market fluctuations and maintain a positive growth trajectory.
With its focus on designing, manufacturing, and marketing systems for fluid material applications, Graco Inc positions itself as a key player in supplying solutions for industrial and commercial fluid management. The company’s emphasis on products for paint and coating application, high-pressure cleaning, and equipment lubrication highlights its diverse market presence and potential for sustained growth in the fluid management 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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