Fluid and coating equipment company Graco (NYSE: GGG) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
Graco missed analysts’ revenue expectations last quarter, reporting revenues of $590.6 million, up 3.3% year on year. It was a slower quarter for the company, with a beat 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 8.7% year on year, improving from the 4.7% 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, only Worthington has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 13.2%. The stock traded up 1.3% on the results.
Read our full analysis of Worthington’s earnings 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 5.9% on average over the last month. Graco is up 5.4% during the same time and is heading into earnings with an average analyst price target of $91.14 (compared to the current share price of $80.75).
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