Graco (GGG) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

The upcoming report from Graco Inc. (GGG) is expected to reveal quarterly earnings of $0.81 per share, indicating an increase of 8% compared to the year-ago period. Analysts forecast revenues of $608.7 million, representing an increase of 6.5% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Graco metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts expect 'Net sales- Expansion Markets' to come in at $41.77 million. The estimate indicates a change of +3% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Contractor' of $309.49 million. The estimate suggests a change of +7.1% year over year.

Analysts' assessment points toward 'Net Sales- Industrial' reaching $257.30 million. The estimate points to a change of +6.2% from the year-ago quarter.

The consensus estimate for 'Operating earnings /(loss)- Industrial' stands at $88.98 million. The estimate compares to the year-ago value of $82.37 million.

The average prediction of analysts places 'Operating earnings/(loss)- Expansion Markets' at $10.02 million. Compared to the present estimate, the company reported $8.83 million in the same quarter last year.

It is projected by analysts that the 'Operating earnings /(loss)- Contractor' will reach $80.74 million. The estimate compares to the year-ago value of $75.49 million.

Over the past month, shares of Graco have returned -2.5% versus the Zacks S&P 500 composite's -0.6% change. Currently, GGG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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