Analysts Upgrade Graco’s FY2025 Earnings Estimate to $2.94
Equities research analysts at Zacks Research have revised their earnings per share (EPS) estimate for Graco Inc. (NYSE: GGG) for the fiscal year 2025. In a note to investors dated September 26, 2023, the analysts increased their forecast from $2.93 to $2.94. This adjustment comes as the consensus estimate for Graco’s current full-year earnings stands at $3.06 per share.
In addition to the annual forecast, Zacks Research has projected Graco’s fourth quarter 2025 earnings at $0.75 per share and estimates for the second quarter of 2027 at $0.89 per share.
Recent Earnings Report and Market Performance
Graco recently reported its earnings results on July 23, 2023. The company announced an EPS of $0.75 for the quarter, which fell short of analysts’ expectations of $0.78 by $0.03. The company generated $571.81 million in revenue, which was below the projected $590.57 million. Despite the revenue miss, Graco’s quarterly revenue increased by 3.4% compared to the same period last year. In the previous year, the company reported an EPS of $0.77.
As of Monday, Graco’s stock opened at $85.01. Over the past year, the stock has seen a low of $72.06 and a high of $92.86. The company holds a market capitalization of $14.09 billion, with a price-to-earnings (P/E) ratio of 30.15 and a PEG ratio of 2.85. The stock’s beta is recorded at 1.03, indicating a relatively stable performance compared to the market.
Dividend Announcement and Institutional Investment
In a recent development, Graco announced a quarterly dividend of $0.275 per share, which will be distributed on November 5, 2023, to shareholders on record as of October 20, 2023. This dividend translates to an annualized total of $1.10 and a yield of 1.3%. The company’s current dividend payout ratio (DPR) stands at 39.01%.
Several hedge funds have shown significant interest in Graco’s shares recently. Notably, Norges Bank acquired a new stake worth $170.66 million during the second quarter. AQR Capital Management LLC increased its holdings by 116.8% during the same period, now owning 735,146 shares valued at $63.2 million. GAMMA Investing LLC made a remarkable increase in its holdings by 9,453.1% in the first quarter, now possessing 400,180 shares worth $33.42 million.
Other notable increases include Millennium Management LLC, which raised its stake by 572.1%, and PineStone Asset Management Inc., which boosted its holdings by 9.1%. Collectively, institutional investors now own 93.88% of Graco’s stock.
Graco Inc. specializes in designing, manufacturing, and marketing systems and equipment for moving, measuring, controlling, dispensing, and spraying fluid and powder materials globally. The company’s Contractor segment offers a variety of products, including sprayers for paint application, two-component proportioning systems, and viscous coatings for various surfaces.
The recent upgrades and institutional interest highlight a positive outlook for Graco as it navigates its fiscal challenges and strives for growth in the industrial products sector.
