The 10-second takeaway
For the quarter ended Dec. 28 (Q4), Graco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins dropped, net margins grew.
Graco booked revenue of $253.7 million. The six analysts polled by S&P Capital IQ looked for revenue of $252.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $215.6 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 $0.68. The seven earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.68 for Q4 were 36% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.7%, 40 basis points better than the prior-year quarter. Operating margin was 22.8%, 10 basis points worse than the prior-year quarter. Net margin was 16.7%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $270.9 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $2.86.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graco is hold, with an average price target of $52.14.
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