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Gorman-Rupp posts Q3 earnings and revenue beat; Shares dip

EditorRachael Rajan
Published 25/10/2024, 12:04
© Reuters.
GRC
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MANSFIELD, Ohio - Shares of Gorman-Rupp Co. (NYSE:GRC) fell 2.8% after the pump manufacturer reported third quarter earnings and revenue ahead of estimates.

Gorman-Rupp reported Q3 adjusted earnings per share of $0.49, beating the analyst consensus of $0.39. Revenue for the quarter came in at $168.2 million, slightly above the $167.5 million consensus estimate and up 0.4% year-over-year.

The company said gross margin improved 260 basis points to 31.3% in Q3, driven by a 240 basis point improvement in cost of materials. However, selling, general and administrative expenses increased to $25.7 million or 15.3% of sales, up from 13.9% of sales a year ago.

"We continued to achieve gross margin and earnings improvement despite a nominal increase in sales compared to last year," said Scott A. King, President and CEO. "Our operating results allowed us to improve our debt, net of cash, by $20 million during the quarter, further improving leverage."

Incoming orders for the first nine months of 2024 were up 4.1% compared to the same period in 2023. The company's backlog stood at $207.8 million at the end of Q3, down from $237.5 million a year earlier.

Gorman-Rupp maintained its full-year 2024 capital expenditure guidance of $18-20 million. The company also announced that Jeffrey S. Gorman will transition from Executive Chairman to Chairman of the Board effective January 3, 2025.

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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