Graco (GGG) Tops Q2 EPS by 32c

Graco (NYSE: GGG) reported Q2 EPS of $1.38, $0.32 better than the analyst estimate of $1.06. Revenue for the quarter came in at $379.5 million versus the consensus estimate of $368.38 million.

• Sales for the quarter and year to date increased in all segments and regions.
• Gross profit margin rates for the quarter and year to date increased due to higher production volume and realized pricing.
• Solid sales growth combined with improved gross margins and lower operating expenses levered operating earnings to increases of 26 percent and 33 percent for the quarter and year to date, respectively.
• Diluted earnings per share include $0.23 for the quarter and $0.28 for the year to date from a required change in accounting for stock compensation.
• Increases in diluted earnings per share include $0.01 for the quarter and $0.02 for the year to date from reduced amortization expense resulting from the impairment charge recorded in the fourth quarter of 2016.

"I am pleased with Graco's second quarter performance, where we achieved our second consecutive quarter of record sales on double-digit growth on an organic, constant currency basis. This is also the second consecutive quarter where we have achieved growth in every region and reportable segment, as well as growth within every segment in every region," said Patrick J. McHale, Graco's President and CEO. "Profitability remained strong in the second quarter, reflecting similar trends from the first quarter of improved sales volumes, increased gross margin performance and solid operating expense leverage. Our employees, end users and channel partners around the world were instrumental to our performance through the first half and I thank them all for their hard work."

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

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