Graco (GGG) shared its earnings report 30 days ago. What can we expect for the stock moving forward?
The main figures for Graco (GGG) provide an overview of the company's performance for the quarter that ended in December 2024. However, it could be helpful to compare some important metrics with Wall Street predictions and the results from the same period last year.
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc.'s Board of Directors has announced a quarterly dividend of 27.5 cents ($0.275) per common share, which will be paid on May 7, 2025, to shareholders who are on record by the end of business on April 14, 2025. The company has around 168.6 million shares available. ABOUT GRACO Graco Inc. provides technology and knowledge for handling fluids and coatings in industrial and commercial settings, and it is involved in designing, manufacturing, and marketing these products.
Graco is likely to gain from introducing new products and improving the ones they already have. However, there are worries about the weakness in the Industrial sector.
Investors should closely monitor Graco (GGG) stock due to recent changes in the options market.
Graco has introduced a new car seat called the EasyTurn™ 360° 2-in-1 Convertible Car Seat, which can rotate a full 360 degrees for easy access to your baby. This innovative design allows parents to easily reach their child whether the seat is in rear-facing or forward-facing mode. It is suitable for children from infancy to toddlerhood, accommodating weights from 4 to 65 pounds.
Graco's yearly results were in line with expectations, even though sales fell by 4%, while they kept a 53% gross margin and a solid cash position, resulting in a 2.8% drop in stock price. The company's reinvestment rate reached 103% of NOPAT because of higher capital expenditures and mergers and acquisitions, which affected short-term returns but indicate potential for long-term growth. Graco continues to generate strong cash flow with a 106% conversion rate, limited share buybacks, increasing dividends, and $675 million available for future acquisitions.
Graco's financial results for 2024 were not good, showing drops in revenue, operating earnings, and diluted EPS, which resulted in a "Hold" rating for their stock. Although the stock rose by 5% over the past seven months, it is still considered overvalued due to high valuation multiples and low growth predictions for 2025. The company is trying to improve its growth through restructuring, but all parts of the business faced challenges in 2024, with the Contractor segment doing the best.
Graco Inc. (NYSE:GGG) will hold its Q4 2024 Earnings Conference Call on January 28, 2024, at 11:00 AM ET. Key company participants include Chris Knutson, Mark Sheahan, and David Lowe, while various analysts from firms like RBC Capital Markets and Goldman Sachs will also join the call. To listen to a replay of the call, please visit Graco's website at www.graco.com.
Graco Inc. (GGG) reported quarterly earnings of $0.64 per share, which is lower than the Zacks Consensus Estimate of $0.76 per share. This is also a decrease from the earnings of $0.80 per share from the same period last year.