MINNEAPOLIS - Graco Inc . (NYSE:GGG), a company specializing in fluid and coatings management technology, has declared a regular quarterly dividend of 25.5 cents per common share. This dividend is slated for payment on November 6, 2024, to shareholders who are on record as of October 21, 2024. Currently, Graco has about 168.8 million shares outstanding.
Graco, headquartered in Minneapolis, is known for providing systems and equipment that are used to move, measure, control, dispense, and spray fluid and powder materials. The company operates globally, catering to a diverse clientele in industries such as manufacturing, processing, construction, and maintenance.
This announcement is based on a press release statement from Graco Inc.
In other recent news, Graco Inc. announced a slight decrease in sales and net earnings for the second quarter, with sales down 1% to $553 million and net earnings also falling 1% to $133 million. Despite this, the company's adjusted non-GAAP net earnings saw a 3% increase. The company's Contractor segment demonstrated growth, while the Industrial and Process segments showed a decline. Graco is preparing for a low single-digit revenue decline in full-year 2024 but remains optimistic with new product launches on the horizon and a robust M&A pipeline.
In a related development, Baird has adjusted the price target for Graco Inc., lowering it from $87.00 to $86.00, while maintaining a Neutral rating on the stock. This revision follows Graco's performance in the first half of 2024, which did not meet the company's own expectations due to a failure to sustain positive order trends. Baird analysts noted that while trends have been broadly stable, the levels remain soft, particularly in the EMEA and APAC markets.
These are part of the recent developments that investors should take into account while considering their investment strategies. Despite the downward adjustment in expectations, Baird recognized Graco's impressive margin performance and suggested that significant revenue growth could change the firm's stance. However, for now, it remains on the sidelines, monitoring the company's performance.
InvestingPro Insights
Graco Inc. (NYSE:GGG), renowned for its fluid handling systems, continues to show financial strength with a market capitalization of approximately $13.96 billion. The company's commitment to shareholder returns is evident, as it has not only declared a regular quarterly dividend but also boasts a notable history of raising its dividend for 18 consecutive years. This consistency is a testament to its financial health and dedication to providing value to its investors.
On the profitability front, Graco's gross profit margins remain impressive at 53.52% for the last twelve months as of Q2 2024, reflecting efficient operations and strong pricing power. Additionally, the company's ability to cover interest payments with its cash flows is a reassuring sign for investors concerned about financial stability. Moreover, Graco's liquid assets surpass its short-term obligations, further highlighting the company's robust liquidity position.
InvestingPro Tips reveal that Graco has maintained its dividend payments for an impressive 54 consecutive years, underscoring its reliability as a dividend-paying stock. Furthermore, the company's stock generally trades with low price volatility, which may appeal to investors seeking stable equity investments. For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available at https://www.investing.com/pro/GGG, offering insights that could help investors make informed decisions about their Graco shares.
As Graco prepares for its next earnings date on October 23, 2024, investors may want to keep an eye on the company's performance metrics and market trends. With a fair value estimation of $79.33 by InvestingPro, slightly below the analyst target of $84.5, investors have valuable data points to consider when evaluating the company's current trading price.
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