Gorman-Rupp (NYSE:GRC) Releases Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• Earnings beat: Gorman-Rupp reported Q EPS of $0.68 versus the $0.49 consensus (beat by $0.19) and revenue of $176.59M versus $170.61M, with a net margin of 7.77% and ROE of 14.06%.
• Shares trading near 12‑month high with a rich valuation: Stock opened at $74.42 (12‑month high $75.03) with a $1.96B market cap and a PE of 37.02; the 50‑ and 200‑day SMAs are $64.37 and $54.54.
• Strong institutional interest and analyst support: Hedge funds own about 59.3% of the stock with large increases from firms like Victory Capital, and the consensus analyst rating is "Buy" (Weiss reiterated a buy).

Gorman-Rupp (NYSE:GRC - Get Free Report) announced its quarterly earnings results on Thursday. The industrial products company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.49 by $0.19, Zacks reports. Gorman-Rupp had a net margin of 7.77% and a return on equity of 14.06%. The company had revenue of $176.59 million for the quarter, compared to analysts' expectations of $170.61 million.

Gorman-Rupp Stock Performance

Shares of GRC stock opened at $74.42 on Friday. The business's fifty day simple moving average is $64.37 and its 200-day simple moving average is $54.54. Gorman-Rupp has a 12-month low of $33.37 and a 12-month high of $75.03. The company has a market cap of $1.96 billion, a PE ratio of 37.02, a PEG ratio of 2.20 and a beta of 1.26. The company has a current ratio of 2.37, a quick ratio of 1.39 and a debt-to-equity ratio of 0.69.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a "buy (b)" rating on shares of Gorman-Rupp in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of "Buy".

Hedge Funds Weigh In On Gorman-Rupp

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Victory Capital Management Inc. boosted its stake in shares of Gorman-Rupp by 211.6% in the fourth quarter. Victory Capital Management Inc. now owns 830,480 shares of the industrial products company's stock worth $39,655,000 after buying an additional 564,000 shares during the last quarter. Amundi purchased a new position in Gorman-Rupp during the fourth quarter valued at approximately $5,942,000. First Trust Advisors LP acquired a new position in Gorman-Rupp in the fourth quarter valued at approximately $5,876,000. Jane Street Group LLC lifted its holdings in Gorman-Rupp by 203.0% in the first quarter. Jane Street Group LLC now owns 48,499 shares of the industrial products company's stock valued at $1,702,000 after acquiring an additional 32,494 shares during the period. Finally, Man Group plc lifted its holdings in Gorman-Rupp by 51.6% in the second quarter. Man Group plc now owns 81,212 shares of the industrial products company's stock valued at $2,982,000 after acquiring an additional 27,630 shares during the period. Hedge funds and other institutional investors own 59.26% of the company's stock.

Gorman-Rupp Company Profile

Gorman-Rupp Company is a U.S.-based manufacturer specializing in the design, production and distribution of pumps and pumping systems. Its product lineup includes centrifugal self-priming pumps, submersible pumps, vacuum priming pumps and engineered pumps for applications such as water and wastewater management, sewage handling, dewatering, industrial processing and agricultural irrigation. The company supports both standard pump requirements and custom engineered solutions for original equipment manufacturers (OEMs) and municipal clients.

Headquartered in Mansfield, Ohio, Gorman-Rupp has built a reputation for rugged, reliable equipment and aftermarket support services.