Graco (NYSE:GGG) Issues Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Graco beat earnings expectations for the quarter, reporting $0.91 EPS versus the consensus estimate of $0.81. However, revenue came in below forecasts at $590.55 million compared with $608.06 million expected.
• The company also announced a quarterly dividend of $0.295 per share, payable August 5, which annualizes to $1.18 per share and yields about 1.6%.
• Analyst sentiment remains cautious overall, with an average Hold rating and price target of $93.50, even as some firms trimmed targets or downgraded the stock.

Graco (NYSE:GGG - Get Free Report) issued its quarterly earnings data on Wednesday. The industrial products company reported $0.91 EPS for the quarter, beating analysts' consensus estimates of $0.81 by $0.10, FiscalAI reports. Graco had a return on equity of 18.66% and a net margin of 22.96%.The firm had revenue of $590.55 million for the quarter, compared to analyst estimates of $608.06 million.

Graco Stock Performance

Shares of NYSE GGG traded up $0.86 during trading hours on Wednesday, hitting $73.99. 1,327,279 shares of the stock were exchanged, compared to its average volume of 1,211,363. The company has a market cap of $12.28 billion, a PE ratio of 24.10, a price-to-earnings-growth ratio of 2.37 and a beta of 0.93. The company's fifty day simple moving average is $75.03 and its two-hundred day simple moving average is $82.77. Graco has a 1-year low of $72.51 and a 1-year high of $95.69.

Graco Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 5th. Stockholders of record on Monday, July 20th will be issued a dividend of $0.295 per share. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, July 20th. Graco's dividend payout ratio is 38.44%.

Analysts Set New Price Targets

A number of analysts have issued reports on GGG shares. Weiss Ratings downgraded shares of Graco from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 5th. Wolfe Research cut Graco from an "outperform" rating to a "peer perform" rating in a research note on Thursday, July 9th. Royal Bank Of Canada restated an "outperform" rating and set a $92.00 price objective (down from $95.00) on shares of Graco in a research note on Thursday, July 16th. DA Davidson reaffirmed a "neutral" rating and issued a $85.00 price objective on shares of Graco in a report on Monday, April 27th. Finally, Robert W. Baird cut their target price on Graco from $96.00 to $92.00 and set a "neutral" rating for the company in a research report on Friday, April 24th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $93.50.

Insider Buying and Selling

In other news, Director Andrea Helen Simon acquired 1,240 shares of the stock in a transaction on Monday, April 27th. The stock was acquired at an average cost of $80.53 per share, for a total transaction of $99,857.20. Following the completion of the transaction, the director directly owned 1,240 shares in the company, valued at approximately $99,857.20. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 2.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Graco

Hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp lifted its position in shares of Graco by 3.2% during the 4th quarter. State Street Corp now owns 7,813,877 shares of the industrial products company's stock worth $640,503,000 after buying an additional 242,817 shares during the last quarter. Morgan Stanley raised its stake in Graco by 5.4% during the fourth quarter. Morgan Stanley now owns 4,057,036 shares of the industrial products company's stock worth $332,556,000 after acquiring an additional 206,949 shares in the last quarter. Amundi lifted its holdings in shares of Graco by 2.6% in the third quarter. Amundi now owns 2,076,887 shares of the industrial products company's stock worth $176,016,000 after acquiring an additional 53,126 shares during the last quarter. Northern Trust Corp lifted its holdings in shares of Graco by 0.8% in the third quarter. Northern Trust Corp now owns 1,865,673 shares of the industrial products company's stock worth $158,508,000 after acquiring an additional 14,764 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Graco by 2.8% in the 3rd quarter. Invesco Ltd. now owns 1,572,598 shares of the industrial products company's stock valued at $133,608,000 after purchasing an additional 42,381 shares in the last quarter. Institutional investors own 93.88% of the company's stock.

Graco Company Profile

Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco's solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.

The company's product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.

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