Graco Posts Quarterly Results Just Below Expectations
Graco reported quarterly earnings of $0.81 per share, falling $0.02 short of the $0.83 estimate. Revenue was $586.39 million, also below the $589.73 million forecast. The company declared a quarterly dividend of $0.295 per share and reported a 23.53% net margin.
Graco makes pumps, valves, meters, regulators and fluid-handling systems for adhesives, paints, sealants, lubricants, coatings and chemicals. Its equipment serves industrial, commercial and household users. The quarter’s net margin was 23.53%, and return on equity was 19.54%.
The stock gained 0.9% to $81.83 after the report. Graco’s market value was about $13.25 billion, with a P/E of 25.73. It declared $0.295 per share quarterly, or $1.18 annualized, for a 1.4% yield. Analysts’ average rating was “Hold,” with a $94.75 target.
Graco’s slight sales and earnings shortfall may matter most to investors watching industrial demand, while its dividend could remain relevant to income-focused shareholders. Because its equipment supports painting, coating, sealing and fluid-handling work across commercial and residential projects, slower results could ripple to suppliers, distributors and maintenance crews that depend on steady production. The stock’s modest gain suggests markets did not view the miss as severe, but analysts’ “Hold” stance may keep attention on whether demand improves in coming quarters.