NYSE$GGG

Graco Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Graco reported record quarter and annual sales and operating earnings, with Process and Industrial segments contributing to 2022 performance.

Graco Inc. reported a record quarter with net sales increasing by 3 percent and operating earnings increasing by 5 percent. The Industrial and Process segments showed strong growth, while the Contractor segment experienced a decrease in sales.

  • Net sales for the quarter increased 3 percent, including 6 percentage points of organic sales growth.
  • The gross profit margin rate declined approximately 2 percentage points due to higher product costs and unfavorable changes in currency translation rates.
  • Total operating expenses decreased 7 percent due to lower sales and earnings-based expenses and changes in currency translation rates.
  • Sales increased 5% in the Americas, 1% in EMEA (up 12% at consistent translation rates), and were flat in Asia Pacific (up 10% at consistent translation rates).

Headline financials

Total Revenue

$555M

Previous: $540M+2.9%
EPS (adj)

$0.73

Previous: $0.66+10.6%
Capital Expenditures

$54M

Previous: $50.9M+5.9%
Free Cash Flow

$51.9M

Previous: $48.7M+6.5%
Net Income

$126M

Previous: $120M+5.0%
Operating Income

$153M

Previous: $145M+5.5%
Gross Profit

$273M

Previous: $275M-0.6%
Cash & Equivalents

$339M

Previous: $624M-45.7%
Total Assets

$2.44B

Previous: $2.44B-0.2%
Stock-Based Comp

$5.22M

Previous: $5.05M+3.3%

Revenue & EPS history

Graco · Revenue · Quarterly

$555M

Q4 2022+2.9%vs Q4 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Graco · $425M total across 2 segments · Q4 2022

  • Contractor
    $235M+25.6%
  • Industrial
    $190M-20.7%

Forward guidance

Graco is cautiously optimistic about sales growth in 2023 and initiates a revenue outlook for the year of low single-digit growth on an organic, constant currency basis.

Tailwinds

  • Developing new products
  • Expanding distribution
  • Seeking adjacent markets
  • Pursuing strategic acquisitions
  • Core growth strategies

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 2022

Historical avgQ4 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro