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Related articleQuarter not tagged2026-10-22Dover Q3 Earnings Beat on Broad Demand, Margins Improve
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Dover Q3 Earnings Beat on Broad Demand, Margins Improve
Dover Corporation DOV has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution. On a reported basis, earnings from continuing operations were $2.50 per share, up 14% year over year. Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%. Cost of sales increased 6.9% year over year to $1.33 billion. Gross profit rose 8.4% to $903 million, while the gross margin improved to 40.4% from 40.1% in the prior-year quarter. Selling, general and administrative expenses increased 6.1% to $484 million. Operating earnings advanced 11.1% to $419 million, while the operating margin expanded to 18.8% from 18.2%. Total adjusted segment EBITDA increased 7.8% to $585 million. The related margin expanded 10 basis points to 26.2%, aided by productivity improvements, favorable product mix and volume leverage. Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote The Engineered Products segment's revenues declined 1.7% year over year to $275 million. The figure missed our estimate of $289 million. Adjusted EBITDA decreased 1.5% to $62.3 million from $63.2 million. The figure beat our estimate of $73 million. Strong demand for aerospace and defense components was offset by lower volumes in European vehicle services. The Clean Energy & Fueling segment's revenues increased 11.9% to $606 million, supported by clean energy components, fluid transport and North American retail fueling. The figure beat our estimate of $574 million. Adjusted EBITDA rose 11.3% to $141.6 million. The figure beat our estimate of $132 million. Volume leverage was partly offset by production ramp-up costs in cryogenic and space components. The Imaging & Identification segment's revenues increased 1.9% to $304.7 million. The reported figure missed our projection of $315 million. Adjusted EBITDA rose 16.1% to $99.7 million from $85.9 million. The figure missed our estimate of $97 million. Double-digit growth in serialization software, along with steady demand for marking and coding products, supported the performance. The Pumps & Process Solutions segment's r…Read full documentShow less
Dover Corporation DOV has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution. On a reported basis, earnings from continuing operations were $2.50 per share, up 14% year over year. Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%. Cost of sales increased 6.9% year over year to $1.33 billion. Gross profit rose 8.4% to $903 million, while the gross margin improved to 40.4% from 40.1% in the prior-year quarter. Selling, general and administrative expenses increased 6.1% to $484 million. Operating earnings advanced 11.1% to $419 million, while the operating margin expanded to 18.8% from 18.2%. Total adjusted segment EBITDA increased 7.8% to $585 million. The related margin expanded 10 basis points to 26.2%, aided by productivity improvements, favorable product mix and volume leverage. Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote The Engineered Products segment's revenues declined 1.7% year over year to $275 million. The figure missed our estimate of $289 million. Adjusted EBITDA decreased 1.5% to $62.3 million from $63.2 million. The figure beat our estimate of $73 million. Strong demand for aerospace and defense components was offset by lower volumes in European vehicle services. The Clean Energy & Fueling segment's revenues increased 11.9% to $606 million, supported by clean energy components, fluid transport and North American retail fueling. The figure beat our estimate of $574 million. Adjusted EBITDA rose 11.3% to $141.6 million. The figure beat our estimate of $132 million. Volume leverage was partly offset by production ramp-up costs in cryogenic and space components. The Imaging & Identification segment's revenues increased 1.9% to $304.7 million. The reported figure missed our projection of $315 million. Adjusted EBITDA rose 16.1% to $99.7 million from $85.9 million. The figure missed our estimate of $97 million. Double-digit growth in serialization software, along with steady demand for marking and coding products, supported the performance. The Pumps & Process Solutions segment's revenues grew 3.2% year over year to $568.5 million but missed our estimate of $572 million. Adjusted EBITDA rose 5.5% to $192.9 million. The figure missed our estimate of $207 million. Growth in AI and energy infrastructure, single-use biopharma and industrial pumps supported revenues. The Climate & Sustainability Technologies segment's revenues increased 17.9% year over year to $481.5 million, driven by strong shipments of global heat exchangers and carbon dioxide refrigeration systems. We had predicted revenues of $448 million for this segment. Adjusted EBITDA increased 5.9% to $88.5 million but missed our estimate of $97.8 million. Dover's bookings totaled $2.31 billion compared with $2 billion in the year-ago quarter. Orders increased across all five segments, resulting in a book-to-bill ratio of 1.03. Climate & Sustainability Technologies recorded bookings of $594.1 million, up from $415.4 million. The company's trailing 12-month book-to-bill ratio reached 1.08. Approximately 50% of its consolidated backlog is scheduled for delivery in 2027, strengthening revenue visibility. Cash flow from operating activities increased to $438.8 million from $424.2 million in the prior-year quarter. Capital expenditure increased to $55.4 million from $54.2 million. For the first nine months, the free cash flow increased 11.4% to $702.9 million. Dover ended September with cash and cash equivalents of $1.69 billion. The company repurchased approximately $330 million worth of shares during the quarter, demonstrating continued capital deployment. Backed by favorable demand trends, Dover narrowed its 2026 adjusted earnings guidance to $10.60-$10.75 per share from the previously stated $10.55-$10.75. Full-year revenue growth is projected at 7-8%, including organic growth of 5-6%, compared with the earlier projections of 6-8% and 4-6%, respectively. The company expects the free cash flow to represent 14-16% of revenues, with capital expenditure projected at $200-$220 million. The company anticipates sustained demand momentum entering 2027. The company's shares have gained 19.2% in the past year compared with the industry's growth of 4.5%. Image Source: Zacks Investment Research Dover currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Graco Inc.'s GGG third-quarter 2026 adjusted earnings of 81 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line grew from 73 cents in the year-ago quarter. Graco's revenues of $590 million surpassed the consensus estimate of $586 million. The top line increased from $543 million in third-quarter 2025. Flowserve Corporation FLS is scheduled to release third-quarter 2026 results on Oct. 28. The Zacks Consensus Estimate for FLS's third-quarter 2026 earnings is pegged at 98 cents per share, suggesting year-over-year growth of 8.9%. The Zacks Consensus Estimate for Flowserve Corp's top line is pegged at $1.24 billion, indicating an increase of 5.3% from the prior year's actual. Applied Industrial Technologies, Inc. AIT is scheduled to release first-quarter fiscal 2027 results on Oct. 27. The Zacks Consensus Estimate for AIT's first-quarter 2027 earnings is pegged at $2.86 per share, suggesting year-over-year growth of 8.7%. The Zacks Consensus Estimate for Applied Industrial's top line is pegged at $1.30 billion, indicating an increase of 7.6% from the prior year's actual. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
TranscriptFY2026 Q32026-10-22FY2026 Q3 earnings call transcript
Earnings source - 74 paragraphs
FY2026 Q3 earnings call transcript
Good morning, and welcome to the Third Quarter Conference Call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation, which is available as part of the webcast player. At the request of the company, we will open the conference up for questions and answers after opening remarks from management.
I will now hand the conference over to John Bower, Director of Investor Relations. John, please go ahead.
Good morning. I'm here with Mark Sheahan, our President and Chief Executive Officer, Sanjiv Gupta, Chief Financial Officer and Treasurer, and Chris Knutson, Vice President, Chief Accounting Officer and Controller. We welcome you to our conference call to report Graco's fiscal 2026 third quarter results. Before we begin, I'd like to remind everyone that certain statements made during this call may be forward-looking and are subject to risks and uncertainties. Please refer to the safe harbor statement included in our earnings release and earnings presentation, as well as our SEC filings for additional information regarding these risks and uncertainties.
I will now turn the conference over to Mark Sheahan.
Thank you, John, and good morning, everyone. Before turning to our quarterly results, I wanted to just highlight the technology agreement we announced yesterday with our ETM business and ABB. Under this agreement, ABB will license ETM's patented transverse flux motor technology for use in data center cooling towers, heat rejection systems, and related thermal management applications. The agreement builds on our existing collaboration with ABB in industrial applications, and it creates an opportunity to participate in one of the fastest-growing infrastructure markets in the world. As demand for AI, cloud computing, and high-density data centers continues to grow, cooling performance is becoming increasingly important to energy efficiency, reliability, and operating costs. We believe ETM's direct drive motor technology is well-positioned to address those needs by reducing mechanical complexity and improving the overall system performance.
Just as importantly, ABB's decision to expand its relationship with ETM and Graco is a strong validation of the technology, the team, and the commercial opportunity ahead. By combining ABB's global scale, customer relationships, and manufacturing capabilities with ETM's differentiated technology, we have a unique opportunity to create value in a large and growing market while further demonstrating the long-term potential of the ETM platform. Based on current development timeline, the companies are targeting the first data center installations by the end of 2029. Turning to the quarterly results. We delivered another strong quarter with record sales of $586 million, an increase of 8% compared to last year, including organic growth of 4%. The growth was broad-based, with all three segments and all reportable regions contributing. Importantly, the growth was supported by improving order activity.
Organic incoming orders increased 7% in the quarter, and they were up 4% year to date. Backlog as of October 16, excluding acquisitions, increased $51 million or 18% from the beginning of the year. That provides us with improved visibility as we enter into the fourth quarter. During the quarter, we completed the acquisition of Valco Melton, which expands our precision adhesive dispensing and quality assurance capabilities. We are excited about the meaningful revenue and operating synergies available across the combined businesses. Our integration priorities are to enable cross-selling through our complementary customer relationships and channels, to leverage procurement and manufacturing capabilities, and to preserve customer service and business momentum. We are targeting expansion of Valco Melton's EBITDA margin from the high teens to the mid-20 range within three years of closing.
Turning to the segments. Our contractor segment delivered sales growth of 5%, including acquisitions and organic growth of 2%, with growth across all of the regions. Results were led by professional paint in the Americas, where customer adoption of new products like QuickShot II and ProReach contributed to healthy sell-through in key channels. The results reflected strong commercial execution and growing demand for our products. Infrastructure spending and commercial construction activity are also contributing to the segment's momentum. Across the segment, bookings increased 7% in the quarter and 2% year to date, supporting demand entering the fourth quarter. The industrial segment delivered 11% sales growth in the third quarter, reflecting contributions from the core business and acquisitions. Growth was led by project activity and powder finishing systems, while customer spending on maintenance and repair remained strong.
We also saw increased adoption of electric technologies, including the QUANTM pump in process manufacturing applications and continued growth in automatic lubrication. Overall demand remains steady, with year to date bookings up 1%. At the same time, customers continue to take a measured approach to certain larger capital projects, resulting in longer decision cycles in some applications. Expansion market segment sales increased 8% during the quarter. Semiconductor delivered the strongest quarterly revenue in several years as customers invested in advanced manufacturing capacity and more complex production processes. These requirements are expanding the range of applications served by our high purity and precision technologies. Environmental also delivered double-digit growth during the quarter.
Bookings in this segment increased 62% in the third quarter, and they are up 44% year to date. Turning to the outlook. We expect fourth quarter revenue of $610 million-$640 million based on current order trends and backlog. Order activity supports our outlook, although demand conditions vary across our markets and larger project schedules can shift revenue between periods. Our priorities are to convert orders into shipments advance new product adoption, manage cost pressures, and capture acquisition synergies while maintaining customer service.
With that, I will turn the call over to Sanjiv to provide more detail on our financial results for the quarter.
Thank you, Mark, and good morning, everyone. I will provide some additional detail on our third quarter financial performance, profitability, and cash flow. We reported record Q3 revenue of $586 million. As we discussed last quarter, our third quarter revenue guidance was $580 million-$600 million, excluding Valco Melton. On a comparable basis, third quarter revenue finished slightly below that range, primarily within the Industrial segment, reflecting the timing around larger capital projects, including longer decision cycles and some projects being delayed or pushed out. Importantly, we are not seeing broad-based deterioration in demand, as indicated by order trends. Our fourth quarter outlook reflects current business conditions and the timing of converting order activity and backlog into revenue. Our outlook does not assume an acceleration in demand during the fourth quarter.
With that context, let me turn to profitability in the third quarter. Adjusted operating earnings came in at $161 million, and adjusted earnings per share grew 5% to $0.81. Realized pricing was able to offset higher net input costs, and we maintained good expense discipline while continuing to invest in our strategic growth initiatives. Adjusted operating margin was 27% of sales, down nearly 180 basis points from the prior year quarter, primarily due to the product and channel mix, including a higher mix of powder finishing system. This was partially offset by disciplined cost management, with operating expenses down approximately $3 million, excluding acquired expenses, amortization, acquisition-related costs, and the prior year contingent consideration benefit. Contractor operating earnings at $71 million rose 5%, with stable margins versus last year.
Excluding Valco Melton and related costs, operating earnings for Industrial were flat at $74 million, with margin down nearly 1% from the same quarter last year, due primarily to product and channel mix discussed earlier. Expansion Markets operating earnings at $11 million increased 5% on semiconductor strength, despite a tough comparable to the prior year, which included upfront license fee in our electric motor product application that did not repeat. Turning to cash flow, we generated $463 million of operating cash flow year to date, representing 116% of adjusted net earnings. We continue to deploy capital in a balanced manner.
For the year to date, we repurchased shares for $467 million, paid $145 million in dividends, invested $436 million in acquisition net of cash acquired, and invested $48 million in capital expenditures. Even after funding these investments, we continue to maintain a slightly positive net cash position. In summary, our third quarter performance reinforces the strength of our operating model and cash generation. We remain well positioned to invest in strategic growth opportunities while maintaining a disciplined approach to capital allocation and long-term shareholder value creation.
That concludes our prepared remarks. Operator, we are ready for the questions.
Thank you. The question and answer session will begin at this time. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Your question will be taken in the order that it is received. Please stand by for your first question. Our first question comes from Mike Halloran with Baird. Please state your question.
Hey, good morning, everyone.
Hi, Mike.
Hey. Could you unpack the contractor piece a little bit for me, maybe by channel with on the more traditional resi commercial side, what you're seeing with the foam business, and any signs of deceleration in growth rates, not necessarily environment, maybe that too, but any signs of deceleration or worsening trends in any of those sub-areas within that segment?
Yeah. I think we are pretty happy with the performance in Q3, and obviously organic growth now two quarters in a row is nice to see in that business. We got a lot of that growth really through the pro paint channel, and it was also nice to see growth across the regions. I would say that the level of activity that we are seeing lines up pretty well with how we thought things would play out with commercial activity and the product application that you mentioned, Mike, still doing well for us, and that has to do with obviously the infrastructure build-out and things that are happening.
Despite the backdrop of the residential housing market, which has been with us here for a while, we didn't really see a market deterioration when it came to that level of activity. I'd characterize it as pretty upbeat, pretty positive. The team's working well. They got a couple new products that hit the mark with the customers that we sell to, and things are in good shape as we enter into Q4.
No, appreciate that. Maybe a similar question for the Industrial segment, some of the sub-areas within there, how are those tracking? Then acceleration, deceleration with any pieces that you would find noteworthy on that side as we head into 4Q here.
Yeah, I would say that the top line, pretty strong performance, up 11% growth, both from underlying businesses and M&A. A lot of the non-M&A growth came out of the powder finishing side of the business, as project activity was a really important contributor there. On the, I'll say the legacy Graco side, the maintenance repair spending remained pretty healthy. We are also seeing some improvement in the adoption of electric technologies, like our QUANTM product, and we're also seeing growth in the automatic lubrication side of the business as well. So year-to-date bookings are still kind of flattish, up about 1%. But overall, we feel like the business is positioned pretty well to recover as some of the, I'll call them the legacy industrial markets, start to recover.
We did see some bookings improvement as we made our way through the quarter. Without getting too cute, I would say that the back half of the quarter, the bookings growth was a little bit stronger than what we were experiencing early in the quarter, and that's kind of continued here into Q4 as well. So, very profitable business. We're excited to get it back on a growth trajectory, and there's some green shoots there.
Thanks, Mark. Appreciate that.
Yep.
Thank you. Our next question comes from Bryan Blair of Oppenheimer. Please state your question.
Thank you. Good morning, everyone.
Hey, Bryan.
Following up on Mike's questions there, it sounds like underlying demand trends are generally unchanged. Your team is executing pretty well. Trying to get my head around the growth moderation that's implied in Q4. If we take a stab at Valco Melton top line contribution, it looks like flattish organic growth year-on-year. Expansion markets face the pretty easy comp, and there's tremendous momentum in semiconductor. Contractor and/or Industrial are implied to slow quarter-on-quarter. Your prepared remarks suggested that there is still a measured approach to capital spending, some uncertainty on the Industrial side, less so in terms of the trend with Contractor. If you could provide a little more color on what you're seeing now and what's baked in directly and in terms of the Q4 guide for the big segments, that would be very helpful.
Yeah. Appreciate the question. I would just start off by saying that the headline outlook is a little bit softer than where things were previous to our announcement. But there is underlying demand, and there's really no deterioration in the underlying demand. If anything, it's maybe picked up here a little bit recently. But I think that as we are looking at how we might finish out the year, I think we're being appropriately cautious, given the short cycle nature of the business, and we really haven't done anything significant when it comes to taking backlogs way down or things like that. We're really kind of basing the outlook based on how we see orders rolling in here in Q4.
I would say that the differences between the two is really we have seen a bit of an acceleration on the organic side in Contractor, in Q2 and now in Q3. And I think that the Industrial, at least the legacy Graco Industrial businesses, remain kind of sluggish. As I said, the bookings are up 1% year to date. We kind of continue to see some, I think, sluggishness as we wrap up here in 2026. And hopefully we see a little bit of an inflection as we get into 2027. But all that stuff factored into what we put out there for a guide here in Q4.
Okay. Appreciate the color. Your team has obviously been quite a bit more active on M&A over recent past, and we know that's been a multi-year initiative. If we think about your current pipeline, slide five references over 100 names in the actives pipeline. How does the scale, composition, focus areas of the pipeline now compare to 12, 24, 36 months ago? How are you thinking about near-term actionability of the pipeline? Given where your stock is trading, I'm sure your team is following the tape today. How are you prioritizing M&A versus repurchase activity currently?
I think on the capital allocation, we're going to be very similar to what we have been doing, pretty balanced between returning cash to the shareholders through buybacks. I think as you indicated, we are looking at the stock price, so it is an attractive opportunity. We will be buying stock for sure, but at the same time, we do have a very deliberate M&A strategy. We highlighted it in one of the slides in the deck. We do have a pipeline. We do have specific areas we have identified. Those are the opportunities we are going to go after. I think our cash generation, our balance sheet allows us that flexibility to do both, and that's what we'll do.
I think to answer your question, we'll-- Given where the stock is, we're going to be buying it as well as we have a healthy pipeline, and we are pretty, I would say, focused on what areas we want to target, the high growth areas to diversify our revenue base, and that's what we're going to do.
Yeah. I'd probably just add that if you were to contrast what the pipeline looks like today versus maybe a couple of years ago, I think that we have maybe more names in there now that are in faster-growing end markets, where we believe that if we can deploy capital, it improves the overall growth profile for the company. Some of the ones that we have highlighted that we already are in there, like semiconductor space, and anything in and around wastewater, water management stuff that our QED business does. Those are a couple of the target areas, and I would say we've beefed up the pipeline there a little bit, Bryan, compared to what it would've been a couple of years ago.
Understood. Thanks again, guys.
Yep.
Our next question comes from Jeffrey Hammond of KeyBanc Capital Markets. Please state your question.
Hey, everyone. This is Mitch Moran for Jeff. Good morning.
Hey, Mitch.
You guys talked about price covering commodity inflation. I guess, overall, with commodities and everything else, what was the overall price cost in the quarter and just any forward view of that?
Yeah. Price cost was flat in the quarter for us. I would think that for the rest of the year, given there's only 13 weeks left, that's kind of the way that I would look at Q4 as well.
Okay. That's helpful. I think the initial ABB installations you said targeted by the end of 2029. I guess in the interim, what milestones should we look for and is this something we might see more of? Thanks.
Yeah. I don't know that there will be a lot. For sure, if there are, we will call them out for you. I think this is a long-term strategic relationship that we have with them. We did have another licensing agreement with them a year ago, and they are going to be launching some of our motors into the marketplace next year. Those are targeted more at conveyor systems and factories, that kind of a thing. But I think that the punchline really is that they're a very large, well-respected global manufacturer of motors and motor technology.
For them to actively embrace what we have, they've seen it in action in a number of Graco products and in some of our other customers' products. I think it's a nice potential revenue stream for the company. It gets us a little bit more entrenched in a market where there's just all kinds of capital going in there. I don't need to tell you guys that, and that doesn't look like it's going to change much over the next five to seven years.
Great. Thank you.
Yep.
Our next question comes from Matt Summerville of D.A. Davidson. Please state your question.
Thanks. I was hoping you could first maybe do a little bit of a different kind of deeper dive on Industrial, really focusing on what you're seeing from a geographic and end market standpoint with bookings. I realize you talked across some product lines, but I'm curious what kind of the walk-around looks like from an end market perspective, and then I have a couple of follow-ups.
Yeah. I do not know that we have a lot. Obviously, we sell through a third-party channel, so it is kind of hard for us to tell. But I would say generally speaking, across the board, there are not any significant major differences in the different product categories that we have in the industrial business and I would say for the geographic as well. I think the overall message here is that it has been kind of flattish and up maybe a little bit in terms of volume here year to date, and that is kind of what we are expecting for the rest of the year.
But I do not know if Chris or Sanjiv, if you have anything you want to add to that.
I would say, if you just look at the Q3, within the industrial segment, the growth was across all the geographies, so it was pretty healthy. I think it was more subdued in, I would say, U.S. But overall, globally, it was pretty healthy, especially in Q3. On a go-forward basis, I think our range is really signaling or assuming certain continuation of this delay in the capital activity. That is what we are reflecting in our outlook. But base case would be really the order trends really stay at the same level. I would say, as Mark indicated, we are seeing some healthy uptick, but our baseline or our outlook does not really reflect that. It is really assuming continuation of the order trends as we had seen before.
Okay. Talking about two other quick ones. First, does Valco have a structurally different potential margin profile relative to core Graco? I know you gave kind of a three-year view from high teens to mid-20s. Is there something structural that will prevent it from hitting the Graco average, number one? And then number two, can you talk about the home center piece of contractor? I do not believe that came up. Thank you.
Yeah. I would say what we wanted to just highlight was the short-term EBITDA margin potential that we are targeting after doing a lot of work and looking at specifics like what can we do to source differently, what can we do with their factory to make things flow better, what kind of capital can we put in there to make them more efficient? So we gave it over a three-year time period, but the only real difference in terms of the structure compared to a Graco industrial business is that they do sell direct. But they have very good direct sales presence. Their teams, I think, are fully staffed. They can handle more revenue across that base of salespeople and sales expenses that they have.
I don't really see anything meaningful that would cause us to think that it has a dramatically different overall margin profile from our general industrial businesses over time. We gave a three-year target, but typically what these things wind up doing, Matt, is over a few years, you get the quick uptick, but then after that, we find other ways and we leverage the volume better as we go forward. With regard to the home center, it wasn't a great quarter. I think it might have been down a little bit, but maybe the guys have more detail on that that they can share with you. But the overall numbers were good in Contractor, and sometimes you do have one channel up, one channel down.
There's nothing fundamentally different in that channel that's happened. It's just the current environment that we're in there. We are pretty encouraged with the growth and where the growth is coming from, the paint store stuff and the commercial side of the business, protective coatings, foam, those types of product lines do carry higher margin rates. I think we're cautiously optimistic that as we close out the year, that the overall demand trends remain intact, and we'll see some growth in Contractor in Q4.
Thanks, Mark.
Yep.
Thank you. As a reminder, to ask a question at this time, please press star one one on your touchtone telephone. Our next question comes from the line of Andrew Buscaglia of BNP Paribas. Please state your question.
Hey, good morning, everyone.
Morning.
I was hoping you could give us some color on just on the dilution in the Industrial segment as it pertains to Valco. It seemed a little, I don't know, heavier. It's hard to parse out based on Q3 because it was kind of a stub quarter, but going forward, would you say a few hundred basis points of dilution and expect 2027 to be sub 30% for the full year for those margins?
I'm looking at my financial experts here, but--
I think what we called it out, I think excluding Valco, the Industrial margins were 33%. If you look at period over period, it was only down 100 basis points, and that is primarily because of the mix we talked about overall within the segment with the powder finishing systems. I would say on a go-forward basis, if you adjust out the Valco specific cost, we should be at that run rate as well. [crosstalk].
Yeah, I think one thing I would just point to is that, call it a high teens EBITDA margin business. You got the revenue. That is what I would plug in right now, and I think over a three-year period, you are going to see that expand to kind of mid-20s. There is noise in the quarter for sure. I mean, we had a lot of one-time costs and other things that flowed through that probably made the numbers look worse than they actually were. As Sanjiv said, if you were to strip out Valco, the underlying profitability of our industrial businesses was actually pretty good at 33%.
Yeah. Okay, that is helpful. Then, just another modeling question while I got you. You guys are typically doing unallocated corporate expenses around like $40 million a year. I would imagine that should go up a little bit with Valco, and then similarly, any color on interest expense would be helpful. Thanks.
I will just say that we have not given our guide for the unallocated corporate. It might go up a little bit, but for the most part, the unallocated corporate relates to stock compensation expense. I don't think that that's going to be a significant headwind for us or a significant cost adder next year. From an interest expense standpoint, you're going to see that kind of shift around, and we're going to see more interest expense as we do have now debt on the books. We have about $135 million of debt. We do have cash of $140 million. But we will see where we've carried a lot of interest income. We'll start to see that transition into more of that debt cost.
I would say from a modeling purposes, I think as we have indicated, based on our capital allocation strategy, we are going to be using our balance sheet as appropriate. We can't really give you an exact number.
Okay. Thank you.
Thank you. If there are no further questions, I will now turn the conference over to Mark Sheahan.
All right. Well, thank you everyone for participating in today's call. I look forward to seeing you here in Q4. I hope you have a good rest of the day. Thanks a lot.
This concludes our conference for today. Thank you all for participating and have a nice day. All parties may now disconnect.
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Zacks
Graco Inc. (GGG) Q3 Earnings and Revenues Miss Estimates
Graco Inc. (GGG) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.22%. A quarter ago, it was expected that this company would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Graco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $586.39 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $543.36 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Graco shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 12.7%. While Graco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Graco was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It wil…Read full documentShow less
Graco Inc. (GGG) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.22%. A quarter ago, it was expected that this company would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Graco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $586.39 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $543.36 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Graco shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 12.7%. While Graco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Graco was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.86 on $639.13 million in revenues for the coming quarter and $3.30 on $2.35 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Regal Rexnord (RRX), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3. This maker of controls for electric motors is expected to post quarterly earnings of $2.69 per share in its upcoming report, which represents a year-over-year change of +7.2%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. Regal Rexnord's revenues are expected to be $1.56 billion, up 4.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Graco Inc. (GGG) : Free Stock Analysis Report Regal Rexnord Corporation (RRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Related articleQuarter not tagged2026-10-20Wall Street's Insights Into Key Metrics Ahead of Graco (GGG) Q3 Earnings
Zacks
Wall Street's Insights Into Key Metrics Ahead of Graco (GGG) Q3 Earnings
In its upcoming report, Graco Inc. (GGG) is predicted by Wall Street analysts to post quarterly earnings of $0.82 per share, reflecting an increase of 12.3% compared to the same period last year. Revenues are forecasted to be $589.82 million, representing a year-over-year increase of 8.6%. The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. With that in mind, let's delve into the average projections of some Graco metrics that are commonly tracked and projected by analysts on Wall Street. The average prediction of analysts places 'Net sales- Expansion Markets' at $45.50 million. The estimate indicates a year-over-year change of +7.5%. According to the collective judgment of analysts, 'Net Sales- Contractor' should come in at $281.25 million. The estimate suggests a change of +7.2% year over year. The combined assessment of analysts suggests that 'Net Sales- Industrial' will likely reach $263.02 million. The estimate indicates a year-over-year change of +10.2%. Analysts expect 'Operating earnings /(loss)- Industrial' to come in at $87.23 million. Compared to the present estimate, the company reported $80.73 million in the same quarter last year. The consensus estimate for 'Operating earnings/(loss)- Expansion Markets' stands at $11.13 million. Compared to the present estimate, the company reported $10.39 million in the same quarter last year. Analysts predict that the 'Operating earnings /(loss)- Contractor' will reach $74.13 million. Compared to the present estimate, the company reported $67.87 million in the same quarter last year. View all Key Co…Read full documentShow less
In its upcoming report, Graco Inc. (GGG) is predicted by Wall Street analysts to post quarterly earnings of $0.82 per share, reflecting an increase of 12.3% compared to the same period last year. Revenues are forecasted to be $589.82 million, representing a year-over-year increase of 8.6%. The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. With that in mind, let's delve into the average projections of some Graco metrics that are commonly tracked and projected by analysts on Wall Street. The average prediction of analysts places 'Net sales- Expansion Markets' at $45.50 million. The estimate indicates a year-over-year change of +7.5%. According to the collective judgment of analysts, 'Net Sales- Contractor' should come in at $281.25 million. The estimate suggests a change of +7.2% year over year. The combined assessment of analysts suggests that 'Net Sales- Industrial' will likely reach $263.02 million. The estimate indicates a year-over-year change of +10.2%. Analysts expect 'Operating earnings /(loss)- Industrial' to come in at $87.23 million. Compared to the present estimate, the company reported $80.73 million in the same quarter last year. The consensus estimate for 'Operating earnings/(loss)- Expansion Markets' stands at $11.13 million. Compared to the present estimate, the company reported $10.39 million in the same quarter last year. Analysts predict that the 'Operating earnings /(loss)- Contractor' will reach $74.13 million. Compared to the present estimate, the company reported $67.87 million in the same quarter last year. View all Key Company Metrics for Graco here>>> Shares of Graco have demonstrated returns of +5.4% over the past month compared to the Zacks S&P 500 composite's +0.7% change. With a Zacks Rank #2 (Buy), GGG is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Graco Inc. (GGG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Related articleQuarter not tagged2026-10-20Graco Earnings: What To Look For From GGG
StockStory
Graco Earnings: What To Look For From GGG
Fluid and coating equipment company Graco (NYSE:GGG) will be reporting earnings this Wednesday after the bell. Here's what to expect. Graco missed analysts' revenue expectations last quarter, reporting revenues of $590.6 million, up 3.3% year on year. It was a slower quarter for the company, with a beat of analysts' EPS estimates. Is Graco a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Graco's revenue to grow 8.7% year on year, improving from the 4.7% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Graco has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Graco's peers in the industrial machinery segment, only Worthington has reported results so far. It exceeded analysts' revenue estimates, delivering year-on-year sales growth of 13.2%. The stock traded up 1.3% on the results. Read our full analysis of Worthington's earnings results here. In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.9% on average over the last month. Graco is up 5.4% during the same time and is heading into earnings with an average analyst price target of $91.14 (compared to the current share price of $80.75). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who's building AI, one company is already using it to print money. And nobody's paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won't last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
Related articleQuarter not tagged2026-10-15Dover Corporation (DOV) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Zacks
Dover Corporation (DOV) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Wall Street expects a year-over-year increase in earnings on higher revenues when Dover Corporation (DOV) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $2.85 per share in its upcoming report, which represents a year-over-year change of +8.8%. Revenues are expected to be $2.21 billion, up 6.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.27% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is…Read full documentShow less
Wall Street expects a year-over-year increase in earnings on higher revenues when Dover Corporation (DOV) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $2.85 per share in its upcoming report, which represents a year-over-year change of +8.8%. Revenues are expected to be $2.21 billion, up 6.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.27% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Dover, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.75%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Dover will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Dover would post earnings of $2.72 per share when it actually produced earnings of $2.74, delivering a surprise of +0.74%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Dover doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Manufacturing - General Industrial industry, Graco Inc. (GGG), is soon expected to post earnings of $0.82 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +12.3%. Revenues for the quarter are expected to be $589.82 million, up 8.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Graco has been revised 2% up to the current level. Nevertheless, the company now has an Earnings ESP of -2.68%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Graco will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Related articleQuarter not tagged2026-10-14Graco Inc. (GGG) Earnings Expected to Grow: Should You Buy?
Zacks
Graco Inc. (GGG) Earnings Expected to Grow: Should You Buy?
Graco Inc. (GGG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +12.3%. Revenues are expected to be $589.82 million, up 8.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.98% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is sig…Read full documentShow less
Graco Inc. (GGG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +12.3%. Revenues are expected to be $589.82 million, up 8.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.98% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Graco, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.68%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Graco will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Graco would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Graco doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Graco Inc. (GGG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Related articleQuarter not tagged2026-10-01Graco Inc. Announces Third Quarter 2026 Earnings Conference Call
Business Wire
Graco Inc. Announces Third Quarter 2026 Earnings Conference Call
MINNEAPOLIS, October 01, 2026--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) announced today that it will release its Third Quarter 2026 earnings after the New York Stock Exchange closes on Wednesday, October 21, 2026. A full-text copy of the earnings announcement will be available on the company's website at investors.graco.com. Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors to discuss the results at 11 a.m. EDT / 10 a.m. CDT on Thursday, October 22, 2026. A real-time listen-only webcast of the conference call will be broadcast on the company's website and by going here: edge.media-server.com. Listeners should register on the website at least 15 minutes prior to the live conference call. For those unable to listen to the live event, a replay of the webcast will be available on the company's website at investors.graco.com. ABOUT GRACO Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20261001151296/en/ Contacts Investors: John M. Bower, 612-623-6770 [email protected] Media: Meredith A. Sobieck, 612-623-6427 [email protected]
Related articleQuarter not tagged2026-09-11Graco Announces Regular Quarterly Dividend
Business Wire
Graco Announces Regular Quarterly Dividend
MINNEAPOLIS, September 11, 2026--(BUSINESS WIRE)--The Board of Directors of Graco Inc. (NYSE:GGG) has declared a regular quarterly dividend of 29.5 cents ($0.295) per common share, payable on November 4, 2026, to shareholders of record at the close of business on October 19, 2026. The Company has approximately 160.4 million shares outstanding. ABOUT GRACO Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260911629585/en/ Contacts FOR FURTHER INFORMATION:Investors: John Bower, [email protected] Media: Kirstie L. Foster, [email protected]
Related articleQuarter not tagged2026-08-28Does Zacks Upgrade of Graco (GGG) Meaningfully Shift the Earnings Narrative for This Industrials Name?
Simply Wall St.
Does Zacks Upgrade of Graco (GGG) Meaningfully Shift the Earnings Narrative for This Industrials Name?
Recently in the past, Graco (ticker: GGG) was upgraded by Zacks to a Rank #2, reflecting more positive analyst earnings estimates and sentiment toward the company’s outlook. This upgrade highlights how shifts in earnings expectations alone can materially influence how investors perceive an industrial equipment maker like Graco. Next, we’ll examine how this improved earnings outlook sentiment could influence Graco’s existing investment narrative around growth, margins, and risk. Find 46 companies with promising cash flow potential yet trading below their fair value. To own Graco, you generally need to believe in a durable, high‑margin industrial business that can keep converting steady demand into cash and dividends. Zacks’ upgrade, driven by higher earnings estimates, reinforces that near term, but it does not fundamentally change the key catalyst of execution on margins, nor the central risk around cost pressures and potential tariff impacts on profitability. The most relevant recent announcement here is Graco’s Q2 2026 earnings, which showed higher sales and net income compared with the prior year. That backdrop of recent earnings growth helps explain why upward revisions to analyst estimates are feeding into sentiment, even as investors still need to watch for any margin pressure from product costs, acquisitions, or weaker contractor and EMEA markets. Yet while earnings revisions look encouraging, investors should be aware that Graco’s exposure to tariffs and trade policies could still... Read the full narrative on Graco (it's free!) Graco's narrative projects $2.7 billion revenue and $650.1 million earnings by 2029. Uncover how Graco's forecasts yield a $90.00 fair value, a 13% upside to its current price. Three fair value estimates from the Simply Wall St Community span roughly US$60 to about US$92 per share, showing how differently individual investors view Graco. You can weigh these varied views against the recent earnings driven sentiment shift and the ongoing risk that tariffs and trade costs might pressure margins and future performance. Explore 3 other fair value estimates on Graco - why the stock might be worth 25% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Graco research is our analysis highlightin…Read full documentShow less
Recently in the past, Graco (ticker: GGG) was upgraded by Zacks to a Rank #2, reflecting more positive analyst earnings estimates and sentiment toward the company’s outlook. This upgrade highlights how shifts in earnings expectations alone can materially influence how investors perceive an industrial equipment maker like Graco. Next, we’ll examine how this improved earnings outlook sentiment could influence Graco’s existing investment narrative around growth, margins, and risk. Find 46 companies with promising cash flow potential yet trading below their fair value. To own Graco, you generally need to believe in a durable, high‑margin industrial business that can keep converting steady demand into cash and dividends. Zacks’ upgrade, driven by higher earnings estimates, reinforces that near term, but it does not fundamentally change the key catalyst of execution on margins, nor the central risk around cost pressures and potential tariff impacts on profitability. The most relevant recent announcement here is Graco’s Q2 2026 earnings, which showed higher sales and net income compared with the prior year. That backdrop of recent earnings growth helps explain why upward revisions to analyst estimates are feeding into sentiment, even as investors still need to watch for any margin pressure from product costs, acquisitions, or weaker contractor and EMEA markets. Yet while earnings revisions look encouraging, investors should be aware that Graco’s exposure to tariffs and trade policies could still... Read the full narrative on Graco (it's free!) Graco's narrative projects $2.7 billion revenue and $650.1 million earnings by 2029. Uncover how Graco's forecasts yield a $90.00 fair value, a 13% upside to its current price. Three fair value estimates from the Simply Wall St Community span roughly US$60 to about US$92 per share, showing how differently individual investors view Graco. You can weigh these varied views against the recent earnings driven sentiment shift and the ongoing risk that tariffs and trade costs might pressure margins and future performance. Explore 3 other fair value estimates on Graco - why the stock might be worth 25% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Graco research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Graco research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Graco's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. The latest GPUs need a type of rare earth metal called Neodymium and there are only 30 companies in the world exploring or producing it. Find the list for free. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GGG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Related articleQuarter not tagged2026-08-25Graco (GGG): Buy, Sell, or Hold Post Q2 Earnings?
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Graco (GGG): Buy, Sell, or Hold Post Q2 Earnings?
Over the past six months, Graco’s stock price fell to $80.14. Shareholders have lost 13.2% of their capital, which is disappointing considering the S&P 500 has climbed by 10.5%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Graco, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free. Despite the more favorable entry price, we’re cautious about Graco. Here are three reasons you should be careful with GGG, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Graco’s 3.9% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. Graco’s unimpressive 5% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, Graco’s ROIC has unfortunately decreased. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. Graco’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 23.8× forward P/E (or $80.14 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re fairly confident there are better stocks to buy right now. We’d recommend looking at one of our top digital advertising picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this w…Read full documentShow less
Over the past six months, Graco’s stock price fell to $80.14. Shareholders have lost 13.2% of their capital, which is disappointing considering the S&P 500 has climbed by 10.5%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Graco, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free. Despite the more favorable entry price, we’re cautious about Graco. Here are three reasons you should be careful with GGG, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Graco’s 3.9% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. Graco’s unimpressive 5% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, Graco’s ROIC has unfortunately decreased. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. Graco’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 23.8× forward P/E (or $80.14 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re fairly confident there are better stocks to buy right now. We’d recommend looking at one of our top digital advertising picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.