Graco (NYSE: GGG) reported Q1 EPS of $0.38, $0.06 worse than the analyst estimate of $0.44. Revenue for the quarter came in at $373.6 million versus the consensus estimate of $391.35 million.

• Sales decreased 8 percent, with double-digit percentage declines in the Industrial segment and in the EMEA and Asia Pacific regions.
• Gross margin rate remained relatively strong as favorable realized pricing mostly offset the adverse impacts of lower factory volume, unfavorable product and channel mix, and changes in currency translation rates.
• Total operating expenses decreased 2 percent. Reductions in volume and earnings-based expenses more than offset a 3 percent increase in product development expenses.
• Other non-operating expenses increased $5 million due to market valuation losses on investments held to fund certain retirement benefits liabilities.

“First quarter sales did not meet our expectations and deteriorated as the quarter progressed,” said Patrick J. McHale, Graco\'s President and CEO.

Outlook

“Due to economic uncertainty, we are withdrawing our 2020 revenue guidance for the remainder of the year,” said McHale. “While the current environment presents unforeseen challenges, for now our playbook remains the same. In the short term, Graco is well positioned financially and strategically to operate without making major changes that would adversely impact our key stakeholders. We will continue to monitor what is happening in our end markets and may adjust our approach if warranted by facts. We are confident that our loyal customer base, strong management team and business model position us well for the long term. I want to recognize the hard work and dedication of our employees, who have kept our factories running and our company open for business.”

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