Graco (GGG) Misses Q4 EPS by 4c

Graco (NYSE: GGG) reported Q4 EPS of $0.80, $0.04 worse than the analyst estimate of $0.84. Revenue for the quarter came in at $306 million versus the consensus estimate of $299.85 million.

“An outstanding effort by Graco’s employees and channel partners around the world resulted in strong financial performance throughout the year, with the Company posting a new record in annual sales and the fourteenth consecutive quarter of record quarterly sales,” said Patrick J. McHale, Graco’s President and Chief Executive Officer. “In the fourth quarter, the Company achieved double-digit growth on a constant currency basis in every reportable segment and region, with the exception of the Asia Pacific region which grew at a high single digit pace. Also on a constant currency basis, fourth quarter sales grew double digits organically, the strongest quarterly organic growth performance of the year and reflecting solid contributions from nearly every product category and geography within Graco. Although currencies were a headwind in the fourth quarter and the Company continued to invest in regional and product expansion throughout the year, Graco achieved record earnings for the second consecutive year.”

Outlook

“Worldwide demand levels were resilient throughout 2014,” stated McHale. “As we enter 2015, we expect demand levels to continue to be supportive of growth in every reportable segment and geography, although currency fluctuations and ongoing geopolitical instability remain a concern. Our long-term growth initiatives continue to be our priority, providing a cornerstone for our mid-single digit organic growth expectations for the first quarter and full year 2015. Acquisitions completed in recent months are expected to add approximately 5 percentage points to the Company’s sales growth in 2015 and, as disclosed previously, provide earnings accretion of 13 to 15 cents per share for the full year before purchase accounting and transaction costs. At current exchange rates, unfavorable movement in foreign currencies would be a headwind of approximately 4 percent on sales and 10 percent on earnings in 2015.”

For earnings history and earnings-related data on Graco (GGG) click here.

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