The 10-second takeaway
For the quarter ended Sep. 28 (Q3), Graco missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share didn't change.
Margins dropped across the board.
Graco logged revenue of $256.5 million. The six analysts polled by S&P Capital IQ looked for revenue of $273.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $227.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.70 per share. GAAP EPS of $0.60 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.6%, 100 basis points worse than the prior-year quarter. Operating margin was 22.0%, 430 basis points worse than the prior-year quarter. Net margin was 14.5%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $265.7 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.58.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graco is outperform, with an average price target of $51.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.