Overview

* Graco ( GGG ) Q3 revenue grows 5% but misses analyst expectations

* Adjusted EPS for Q3 misses analyst expectations

* Organic revenue declined due to softness in global construction markets

Outlook

* Graco ( GGG ) expects low single-digit sales growth for the full year on an organic, constant currency basis

* Company sees steady order rates and momentum in pricing actions

* Graco ( GGG ) enters favorable year-over-year comparison period within Contractor segment

Result Drivers

* ACQUISITIONS - Incremental sales from acquired operations contributed 6 percentage points of sales growth

* PRICING ACTIONS - Strategic pricing actions began to gain traction, improving margin performance

* MARKET EXPANSION - Encouraging growth in select end markets and geographies, particularly in Industrial and Expansion Markets segments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $543.40 $561.70

mln mln (10

Analysts

)

Q3 Miss $0.73 $0.74

Adjusted (10

EPS Analysts

)

Q3 EPS $0.82

Q3 Miss $122.80 $124.30

Adjusted mln mln (8

net Analysts

earnings )

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

* Wall Street's median 12-month price target for Graco Inc ( GGG ) is $91.00, about 7.8% above its October 21 closing price of $83.86

* The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)