Fluid and coating equipment company Graco (NYSE: GGG) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Graco met analysts’ revenue expectations last quarter, reporting revenues of $528.3 million, up 7.3% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ Process revenue estimates.
Is Graco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Graco’s revenue to grow 6.7% year on year to $590.2 million, a reversal from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Graco has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Graco’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 21.2%, beating analysts’ expectations by 15.6%, and Worthington reported flat revenue, topping estimates by 5.6%. GE Aerospace traded down 1.1% following the results while Worthington was up 1.8%.
Read our full analysis of GE Aerospace’s results here and Worthington’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 5.9% on average over the last month. Graco’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $91.15 (compared to the current share price of $86.19).
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