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What: Shares of equipment maker Graco
So what: Revenue rose 8% to $234.1 million but earnings per share fell 5% to $0.58, below expectations. The results did include a $4 million charge related to the acquisition of ITW's finishing business.
Now what: The results weren't all that bad; expectations may have just gotten ahead of the company this quarter. The first quarter of last year was a record quarter and the company spent money investing in product development and invested $8 million in capital expenditures during the quarter. I think this is a blip in the long-term business and think a forward P/E ratio of 17 provides a good value after today's drop.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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