Graco shares slip 4% on earnings miss, soft demand outlook

Published 27/01/2025, 23:04
Graco shares slip 4% on earnings miss, soft demand outlook

MINNEAPOLIS - Graco Inc . (NYSE:GGG) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 4.6% in after-hours trading on Monday.

The fluid handling equipment manufacturer posted adjusted earnings per share of $0.64, missing the consensus estimate of $0.77. Revenue declined 3% year-over-year to $548.7 million, also below analyst projections of $551.75 million.

"We continued to experience slower demand across many end markets in the fourth quarter," said Mark Sheahan, Graco's President and CEO. He noted that soft demand for industrial products in China, lower sales of semiconductor equipment, and timing of powder coatings projects were notable headwinds.

The Contractor segment saw sales increase 3% to $246.9 million, boosted by acquisitions. However, operating earnings in the segment plunged 30% due to higher product costs, lower sales volumes, and litigation expenses.

Industrial segment sales dropped 14% to $165.7 million amid weakened global industrial activity. Process segment sales were flat at $136.1 million.

For 2025, Graco expects low single-digit organic sales growth on a constant currency basis. The company cited stabilizing demand in China and for semiconductor products as potential growth drivers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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