Fluid and coating equipment company Graco (NYSE: GGG) will be reporting results this Wednesday after market close. Here’s what investors should know.
Graco missed analysts’ revenue expectations last quarter, reporting revenues of $540.1 million, up 2.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Graco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Graco’s revenue to grow 6.5% year on year, improving from the 3.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Graco has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Graco’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and Worthington reported revenues up 16.9%, falling short of estimates by 4%. GE Aerospace traded down 3.2% following the results while Worthington’s stock price was unchanged.
Read our full analysis of GE Aerospace’s results here and Worthington’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4% on average over the last month. Graco is down 2.5% during the same time and is heading into earnings with an average analyst price target of $90.29 (compared to the current share price of $73.61).
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