Investing.com -- Graco Inc (NYSE:GGG) reported third quarter results that fell short of Wall Street expectations, with adjusted earnings per share of $0.81 missing the analyst consensus of $0.83 and revenue of $586.4 million coming in below the estimate of $589.74 million. Shares fell 7.3% in after-hours trading Wednesday following the results.
Revenue increased 8% YoY from $543.4 million in the prior year period, driven by 4 percentage points of organic sales growth and 4 percentage points from acquisitions. Adjusted operating earnings rose 1% to $160.9 million as price realization offset higher product costs. The company repurchased $132 million of shares during the quarter and $463 million year-to-date.
For the fourth quarter, Graco provided revenue guidance of $610 million to $640 million. The midpoint of $625 million compares to the analyst consensus, though no specific estimate was provided in the available data.
"Graco delivered a solid quarter, with broad-based performance across our businesses and geographies," said Mark Sheahan, President and Chief Executive Officer. "We were encouraged that incoming organic orders increased 7% in the quarter and 4% for the year-to-date, with all three segments contributing to year-to-date order growth."
The company announced a technology partnership with ABB to expand its Transverse Flux Motor technology into data center cooling towers and thermal management applications. Graco entered into a license agreement with ABB, with the companies targeting first installations in data center environments by the end of 2029.
Growth in professional paint, powder finishing and semiconductor applications, combined with contributions from recent acquisitions, drove the quarter's performance. Adjusted diluted earnings per share increased 5% from $0.77 in the prior year period, benefiting from higher adjusted operating earnings and share repurchases.
Original Article
Graco falls 7% as third quarter results miss estimates
