🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

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

EditorRachael Rajan
Published 25/10/2024, 12:04
© Reuters.
GRC
-

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.