Graco's Quarterly Earnings: Analyst Outlook and Future Potential
Understanding Graco's Upcoming Earnings Release
Graco (NYSE: GGG) is gearing up for its earnings announcement, and investors are paying close attention to what this might mean for the company's future. With expectations around the upcoming announcement, understanding the underlying factors can provide valuable insights.
Anticipated Earnings Per Share
Analysts are forecasting an earnings per share (EPS) of $0.74 for Graco. This figure serves as a benchmark for what investors hope to see during the earnings call. Holding on to the optimism that Graco will exceed this estimate could indicate stronger performance on the horizon.
The Significance of Company Guidance
It's essential for investors to note that while meeting or exceeding EPS estimates is vital, the company's guidance for future quarters often plays a more significant role in stock evaluation. A positive outlook can reassure shareholders and positively influence the stock price.
Graco's Recent Earnings Performance
In the previous quarter, Graco fell slightly short of expectations, missing the EPS by $0.03. This underperformance resulted in a noticeable drop of 2.68% in the stock price the following day. Understanding the impact of such earnings misses on stock movement is critical for potential and existing investors.
Graco's Historical Performance Overview
The following table highlights Graco's EPS estimates against actuals over recent quarters:
| Quarter | Estimated EPS | Actual EPS | Price Change (%) |
|---|---|---|---|
| Q2 2025 | 0.78 | 0.75 | -3.00 |
| Q1 2025 | 0.68 | 0.70 | 2.00 |
| Q4 2024 | 0.76 | 0.64 | -3.00 |
| Q3 2024 | 0.76 | 0.71 | -1.00 |
Graco Share Performance Insights
As of the latest trading on October 20, shares of Graco were priced at $82.34. Over the past 52 weeks, the stock has registered a rise of 1.34%. This modest increase reflects a generally positive sentiment among long-term shareholders, who often maintain a bullish perspective leading up to earnings announcements.
Evaluating Analyst Opinions on Graco
Staying current with market sentiments is critical for investors. Analysts have provided Graco with a consensus rating of Neutral, suggesting a cautious approach. The average one-year price target stands at $91.00, indicating a potential upside of approximately 10.52% from the current price level.
Comparing Graco to Industry Peers
Analyzing Graco in the context of its industry peers is essential to gauge its competitive standing. Here's how Graco compares with some major players:
- ITT has a Buy rating with a target price of $198.38, suggesting an upside of around 140.93%.
- Nordson holds a Neutral rating, with an estimated target of $263.50, representing a possible upside of 220.01%.
- Lincoln Electric Holdings has an Outperform rating with a price target of $267.25, indicating a potential 224.57% upside.
Key Insights from Peer Analysis
The peer analysis reveals essential metrics for Graco and its competitors:
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity (ROE) |
|---|---|---|---|---|
| Graco | Neutral | 3.36% | $299.53M | 5.13% |
| ITT | Buy | 7.34% | $346.80M | 4.54% |
| Nordson | Neutral | 12.08% | $406.52M | 4.23% |
| Lincoln Electric Holdings | Outperform | 6.56% | $405.55M | 10.54% |
A Close-Up on Graco's Business
Graco is known for its specialized equipment designed for fluid management and coatings. The company operates across three significant segments: industrial, process, and contractor. Its wide-reaching market presence includes industrial, automotive, and construction environments. With a reported $2.1 billion in sales last year, Graco illustrates a vast operational landscape.
Financial Performance Breakdown
When dissecting Graco's financial health, several key indicators stand out:
Market Capitalization: Graco's market cap is below the industry norm, which can often limit its growth potential.
Revenue Growth: The company reported a growth rate of 3.36% recently, which, while positive, is comparatively slower than its peers.
Net Margin: Graco exhibits a solid net margin of 22.32%, indicating efficiency in cost management.
Return on Equity: The company boasts a ROE of 5.13%, higher than many of its competitors.
Return on Assets: Graco's ROA stands at 4.22%, showcasing its asset management proficiency.
Debt Management: The company's debt-to-equity ratio is commendable at 0.02, reflecting prudent financial practices.
Frequently Asked Questions
What is Graco's upcoming earnings estimate?
Analysts expect Graco to report an EPS of $0.74 for the next earnings release.
How have Graco's shares performed recently?
Shares of Graco were trading at $82.34, showing a 1.34% increase over the past year.
What is the general analyst sentiment for Graco?
Analysts maintain a Neutral rating for Graco, with a one-year price target of $91.00.
How does Graco compare to its peers?
Graco's growth is slower than some competitors but shows strong profitability metrics like its net margin and ROE.
What sectors does Graco serve?
Graco provides products for various sectors, including industrial, automotive, and construction industries.
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