NYSE$GGG

Graco Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Graco's Q4 2019 earnings were released

Graco Inc. reported a 1% increase in net sales for the fourth quarter, driven by growth in the Americas and EMEA regions, though offset by declines in Asia Pacific. The Contractor segment's strong sales growth and favorable operating leverage boosted profitability, while gross margin rates decreased due to lower factory volume and unfavorable product mix.

  • Asia Pacific sales declines offset growth in the Americas and EMEA regions.
  • Strong sales growth in the Contractor segment drove up fourth quarter profitability.
  • Gross margin rates decreased due to lower factory volume and unfavorable product and channel mix.
  • Total operating expenses decreased 6 percent.

Headline financials

Total Revenue

$412M

Previous: $406M+1.4%
EPS (adj)

$0.48

Previous: $0.43+11.6%
Capital Expenditures

$25.5M

Previous: $14.3M+78.2%
Free Cash Flow

$93.8M

Previous: $99.4M-5.7%
Net Income

$84.8M

Previous: $73.7M+15.1%
Operating Income

$104M

Previous: $96.6M+7.9%
Gross Profit

$209M

Previous: $209M+0.3%
Cash & Equivalents

$221M

Previous: $132M+67.3%
Total Assets

$1.69B

Previous: $1.47B+14.9%
Stock-Based Comp

$3.48M

Previous: $3.55M-1.9%

Revenue & EPS history

Graco · Revenue · Quarterly

$412M

Q4 2019+1.4%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Graco · $323M total across 2 segments · Q4 2019

  • Industrial
    $195M
  • Contractor
    $129M

Forward guidance

Graco anticipates challenging end market conditions in the Industrial and Process segments for the first half of 2020, but remains positive about the Contractor segment. The company projects low single-digit revenue growth on an organic, constant currency basis for 2020.

Tailwinds

  • Favorable conditions continue in the Contractor segment.
  • Demand for products is solid across major end markets and product categories in the Contractor segment.

Headwinds

  • Challenging end market conditions are expected to remain in place for the Industrial segment for at least the first half of the year.
  • Challenging end market conditions are expected to remain in place for the Process segments for at least the first half of the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.0%

Avg return

30 days after

62%

43 / 69 earnings

Positive

+10.8%

Q1 2023

Best reaction

-10.7%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.7%-6.1%-11.6%
Q4 2025+1.4%+0.7%+7.2%
Q3 2025+0.0%-0.3%+0.8%
Q2 2025+2.6%+1.5%+3.5%
Q1 2025+1.9%+3.2%+5.9%
Q4 2024-3.0%-2.1%+0.1%
Q3 2024-1.7%-2.8%+8.7%
Q2 2024+2.1%+1.7%+0.3%
Q1 2024-7.1%-8.4%-9.0%
Q4 2023+2.5%+2.6%+6.2%
Q3 2023+5.7%+5.1%+15.2%
Q2 2023-7.5%-8.5%-10.8%
Q1 2023+10.8%+14.5%+10.0%
Q4 2022+1.7%+6.1%+2.9%
Q3 2022+2.9%+6.9%+7.9%
Q2 2022+4.8%+6.9%+4.8%
Q1 2022-1.0%-2.7%-2.0%
Q4 2021+4.4%+1.0%+0.8%
Q3 2021+4.0%+4.3%+7.1%
Q2 2021-1.2%-0.9%-0.1%
Q1 2021+0.6%+1.1%-1.7%
Q4 2020-6.3%-9.1%-7.9%
Q3 2020-1.1%-1.9%+4.5%
Q2 2020+4.1%+3.7%+9.4%
Q1 2020-0.1%+2.9%+2.9%
Q4 2019+5.9%+2.3%+3.3%
Q3 2019-1.4%-0.4%+2.7%
Q2 2019-5.3%-5.8%-13.6%
Q1 2019-4.6%-3.8%-10.1%
Q4 2018+3.2%+2.3%+12.0%
Q3 2018+4.0%+3.2%+11.7%
Q2 2018-0.3%-3.9%-1.9%
Q1 2018+2.6%-1.8%+2.5%
Q4 2017-5.8%-7.7%-9.6%
Q3 2017+3.3%+1.2%+1.2%
Q2 2017+7.1%+7.7%+5.2%
Q1 2017+10.1%+9.7%+11.2%
Q4 2016+0.0%+1.4%+5.1%
Q3 2016+6.7%+6.2%+13.3%
Q2 2016-7.9%-6.7%-6.3%
Q1 2016-6.3%
Q4 2015+7.5%
Q3 2015+5.0%
Q2 2015+4.4%
Q1 2015+0.5%
Q4 2014-7.4%
Q3 2014+1.4%
Q2 2014+1.6%
Q1 2014-1.7%
Q4 2013-1.6%
Q3 2013+0.9%
Q2 2013+0.0%
Q1 2013+6.9%
Q4 2012+3.7%
Q3 2012-1.1%
Q2 2012+1.9%
Q1 2012-5.2%
Q4 2011+1.1%
Q3 2011+9.9%
Q2 2011-10.7%
Q1 2010+7.5%
Q1 2011-1.1%
Q4 2010-6.0%
Q4 2008-6.0%
Q3 2010+2.7%
Q3 2009+2.7%
Q4 2009+0.3%
Q2 2010+0.3%
Q2 2009+0.3%

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