GGG Earnings Prediction
The chart below shows how GGG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GGG sees a +0.14% change in stock price 10 days leading up to the earnings, and a +2.40% change 10 days following the report. On the earnings day itself, the stock moves by -0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
GGG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
548.67M
-3.17%
5.67%
Gross Margin
50.90%
-3.84%
-4.29%
Operating Margin
23.70%
-20.97%
-15.57%
Net Margin
19.81%
2.11%
-15.85%
EPS
0.63
-1.56%
-11.27%
No Data Available
GGG Earnings Analysis
Graco Inc Corporation (GGG.N) Earnings Conference Call
Positive
Fourth Quarter Sales Performance: 4th quarter sales of $549 million, with acquisitions contributing 3% sales growth.
Adjusted Net Earnings: Adjusted non-GAAP net earnings were $110 million or $0.64 per diluted share, excluding business reorganization charges and other prior year items.
Cash Flow Performance: Total cash provided by operations totaled $622 million for the year, representing 128% of reported net earnings.
Capital Return to Shareholders: Significant year-to-date uses of cash included $31 million in share repurchases and $172 million in dividends, demonstrating strong capital return to shareholders.
Cost Savings Initiative: The new global customer-centric operating structure is expected to generate annual savings of approximately $16 million.
Negative
Sales Decline Analysis: 4th quarter sales decreased 3% year-over-year to $549 million, with a 6% decline excluding acquisitions, indicating a weakening demand across all segments.
Earnings Decline Analysis: Reported net earnings fell 1% to $109 million, while adjusted non-GAAP net earnings decreased 20% to $110 million, reflecting significant pressure on profitability.
Operating Expenses Increase: Operating expenses increased by 15% to $19 million, primarily due to business reorganization costs and litigation expenses, which negatively impacted overall financial performance.
Gross Margin Decline: The gross margin rate decreased by 200 basis points, driven by lower sales volume and unfavorable product mix, leading to an operating margin rate of 24%, down from 30% in the prior year.
Industrial Segment Revenue Decline: The Industrial segment revenue declined 13% in Q4 and 6% for the full year, with significant weakness in key markets such as China, impacting overall growth prospects.
GGG FAQs
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GGG Earning Call Sentiment
Earnings call transcript: Graco Q4 2024 sees EPS miss, stock dips
GGG.N
-0.15%Positive
The earnings call reveals a negative sentiment with declining sales, net earnings, and gross margins. While acquisitions contributed to sales, organic growth declined. Increased operating expenses and litigation costs further strain financial health. The Q&A section highlights underperformance in key divisions, vague management responses, and concerns over tariffs and order slowdowns. Despite optimistic guidance on reorganization savings and expansion markets, the overall outlook remains weak. The market is likely to react negatively due to these factors, resulting in a stock price decline of -2% to -8% over the next two weeks.
