Graco (NYSE:GGG) Q3 Earnings: What Can You Expect?


Graco Inc. (NYSE:GGG) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $0.42/share on revenue of $385.2 million. The consensus earnings per share (EPS) of $0.42/share is based on a poll of 10 analysts and represents a decline in eps of −6.4% over the same quarter last year, when the company reported earnings of $0.45/share.

The revenue forecast of $385.2 million based on a poll of 10 analysts implies a year-over-year (YoY) decline in revenue of −3.8%. Last year the company reported $400.6 million in revenue for the quarter.

Expected to report EPS contraction of −6.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $385.17 $400.56 −3.8%
EPS $0.42 $0.45 −6.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 1 quarters.

What are your expectations from Graco Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.26 $0.37 41.1% Beat
Q1, 2020 $0.43 $0.38 −11.6% Missed
Q4, 2019 $0.39 $0.48 22.7% Beat
Q3, 2019 $0.51 $0.45 −11.4% Missed
Q2, 2019 $0.53 $0.50 −6.1% Missed
Q1, 2019 $0.49 $0.47 −4.9% Missed
Q4, 2018 $0.43 $0.43 0.4% Beat
Q3, 2018 $0.46 $0.50 7.8% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 26, 2020, the stock price reacted by increasing 4.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 22, 2020 $52.29 $54.46 4.1% Increase
April 22, 2020 $44.56 $44.52 −0.1% Decline
January 27, 2020 $51.98 $55.05 5.9% Increase
October 23, 2019 $46.72 $46.08 −1.4% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.86, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.86 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Graco Inc. is currently trading at $65.64/share, up 0.1% for the day. The company is trading at approximately 99.2% of its 52-week high of $66.14/share. The company’s stock price is up 20.5% since the last earnings report and up 1.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 75.92 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:GGG Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 40.44 and a forward P/E multiple of 40.21.

Graco Inc.’s current share price also implies a price-to-book (P/B) multiple of 10.66. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 26, 2020
Stock Price (Current) $65.64
P/E Ratio 40.4x
P/E Ratio (Fwd) 40.2x
PEG Ratio −1.9
Total Debt / Total Capital 4.0%
Levered Free Cash Flow $307.1 million
EV / EBITDA 25.9x


Graco Inc. is a large-cap stock with a market capitalization of $10.931 billion and a total enterprise value of $10.95 billion. The company operates in the Industrials sector and the Machinery industry.

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The company’s Industrial segment offers proportioning systems to spray polyurethane foam and polyurea coatings; equipment that pumps, meters, mixes, and dispenses sealant, adhesive, and composite materials; and gel coat equipment, chop and wet-out systems, resin transfer molding systems, and applicators. It also provides liquid finishing equipment; paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The company’s Process segment offers pumps to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. The company’s Contractor segment offers sprayers to apply paint to walls and other structures; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. It primarily sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users. The company was founded in 1926 and is headquartered in Minneapolis, Minnesota.

Expertise: financial technology, analyzing market trends. Brian is a founder at, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.