NYSE$GGG

Graco Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record sales and operating earnings.

Graco Inc. announced record sales and operating earnings for the fourth quarter and annual sales growth in all segments and regions. Net sales for the quarter increased 15 percent, driven by growth in the Americas, EMEA, and Asia Pacific regions.

  • Sales for the quarter increased in all segments and regions.
  • There were 14 weeks in the fiscal fourth quarter of 2021 compared to 13 weeks in 2020.
  • Gross profit margin rate for the quarter weakened mainly due to higher product costs.
  • Higher sales and earnings-based expenses contributed to the 15 percent increase in total operating expenses for the quarter.

Headline financials

Total Revenue

$540M

Previous: $470M+14.7%
EPS (adj)

$0.66

Previous: $0.61+8.2%
Sales Change Americas

13.0%

No prior period
Sales Change EMEA

4.0%

No prior period
Sales Change Asia Pacific

34.0%

No prior period
Gross Profit Margin Rate Change

-1.0%

No prior period
Capital Expenditures

$50.9M

Previous: $25.6M+99.1%
Free Cash Flow

$48.7M

Previous: $106M-53.9%
Net Income

$120M

Previous: $115M+4.8%
Operating Income

$145M

Previous: $132M+9.4%
Gross Profit

$275M

Previous: $245M+12.1%
Cash & Equivalents

$624M

Previous: $379M+64.8%
Total Assets

$2.44B

Previous: $1.99B+22.9%
Stock-Based Comp

$5.05M

Previous: $3.72M+35.8%

Revenue & EPS history

Graco · Revenue · Quarterly

$540M

Q4 2021+14.7%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Graco · $427M total across 2 segments · Q4 2021

  • Industrial
    $240M+12.7%
  • Contractor
    $187M+7.4%

Forward guidance

The company is initiating an outlook for the full-year 2022 of high single-digit sales growth on an organic, constant currency basis, with positive expectations in every region and reportable segment.

Tailwinds

  • Positive expectations in every region
  • Positive expectations in every reportable segment
  • Pricing actions
  • Strong demand levels across all major end markets
  • Strong demand levels across all product categories

Headwinds

  • Supply chain challenges
  • Logistical challenges
  • Inflationary challenges

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 2021

Historical avgQ4 2021

+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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