Graco: Q4 Earnings, Fulfilling What They Promised
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Graco's Q4 earnings met expectations despite a 4% sales drop. The company maintained a 53% gross margin and strong cash position, but its stock dropped 2.8%. Increased CAPEX and M&A activities impacted returns but promise long-term growth. Graco's cash generation remains robust with a 106% conversion rate, minimal buybacks, growing dividends, and $675M in cash for future acquisitions.
January 29, 2025 | 10:30 pm
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Graco's Q4 earnings met expectations, but a 4% sales drop led to a 2.8% stock decline. The company maintained a strong cash position and is reinvesting heavily in CAPEX and M&A, promising long-term growth.
Graco's stock dropped 2.8% due to a 4% sales decline, despite meeting earnings expectations. The company's strong cash position and reinvestment in CAPEX and M&A suggest potential for long-term growth, but the immediate impact on stock price is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100