MANSFIELD, Ohio - Shares of Gorman-Rupp Co. (NYSE:GRC) fell 2.8% after the pump manufacturer reported third quarter earnings and revenue ahead of estimates.
Gorman-Rupp reported Q3 adjusted earnings per share of $0.49, beating the analyst consensus of $0.39. Revenue for the quarter came in at $168.2 million, slightly above the $167.5 million consensus estimate and up 0.4% year-over-year.
The company said gross margin improved 260 basis points to 31.3% in Q3, driven by a 240 basis point improvement in cost of materials. However, selling, general and administrative expenses increased to $25.7 million or 15.3% of sales, up from 13.9% of sales a year ago.
"We continued to achieve gross margin and earnings improvement despite a nominal increase in sales compared to last year," said Scott A. King, President and CEO. "Our operating results allowed us to improve our debt, net of cash, by $20 million during the quarter, further improving leverage."
Incoming orders for the first nine months of 2024 were up 4.1% compared to the same period in 2023. The company's backlog stood at $207.8 million at the end of Q3, down from $237.5 million a year earlier.
Gorman-Rupp maintained its full-year 2024 capital expenditure guidance of $18-20 million. The company also announced that Jeffrey S. Gorman will transition from Executive Chairman to Chairman of the Board effective January 3, 2025.
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