The 10-second takeaway
For the quarter ended June 28 (Q2), Graco beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
Graco logged revenue of $286.0 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $282.3 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $268.2 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 $0.93. The eight earnings estimates compiled by S&P Capital IQ predicted $0.85 per share. Non-GAAP EPS of $0.93 for Q2 were 66% higher than the prior-year quarter's $0.56 per share. GAAP EPS of $0.92 for Q2 were 64% higher than the prior-year quarter's $0.56 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 55.5%, 90 basis points better than the prior-year quarter. Operating margin was 26.3%, 410 basis points better than the prior-year quarter. Net margin was 20.2%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $273.7 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $3.20.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graco is outperform, with an average price target of $62.00.
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