Research Desk Line-up: AMETEK Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 8, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Graco Inc. (NYSE: GGG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GGG, following the Company's release of its second quarter fiscal 2017 results on July 26, 2017. The maker of fluid and lubrication systems reported better than expected sales and earnings numbers and also raised its sales forecasts. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected AMETEK, Inc. (NYSE: AME) for due-diligence and potential coverage as the Company announced on August 02, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on AMETEK when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GGG; also brushing on AME. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=GGG

http://protraderdaily.com/optin/?symbol=AME

Earnings Reviewed

For the three months ended June 30, 2017, Graco's sales totaled $379.5 million, reflecting an increase of 9% compared to sales of $348.1 million in Q2 2016, with Company's sales increased in all segments and regions. Graco stated that changes in currency translation rates decreased sales by approximately $4 million or 1% for the reported quarter. The Company's sales exceeded analysts' estimates of $368.3 million.

During Q2 2017, Graco's gross profit increased to $203.94 million compared to gross profit of $185.14 million in Q2 2016, reflecting higher production volume and realized pricing, and partially offset by unfavorable impacts of currency translation and product mix. The Company's operating income for the reported quarter jumped 26% to $98.8 million compared to $78.3 million in the prior year's same quarter.

Graco's effective income tax rate for Q2 2017 was 17%, down from 31% in Q2 2016. The Company noted that the adoption of a new accounting standard requiring excess tax benefits, related to stock option exercises, to be credited to the income tax provision reduced the tax provision by $13.6 million for the reported quarter, hence decreasing the effective tax rate for Q2 2017 by 14 %.

For Q2 2017, Graco's net earnings totaled $79.80 million, up 57% compared to earnings of $50.9 million. The Company's diluted earnings per share were $1.38, up 55% on a y-o-y basis, and included $0.23 per share which was related to the adoption of a new accounting standard in 2017, in the accounting for tax benefits on stock compensation. The results exceeded Wall Street's expectations for earnings of $1.06 per share.

Segment Results

During Q2 2017, Graco's Industrial segment recorded sales of $174.9 million, up 11% on a y-o-y basis. The segment's operating earnings surged 21% on a y-o-y basis. Sales increased in all of the Industrial segment's product applications. Year-to-date operating margin rate for the Industrial segment increased 3% on a y-o-y basis. Favorable effects of higher sales volume, improved gross margin rate, and expense leverage were partially offset by the unfavorable effect of currency translation.

The Company's Process segment's sales jumped 13% to $73.4 million in the reported quarter, while its operating earnings jumped 76% compared to the year ago corresponding period. The Process segment had solid sales growth across most product applications, partially offset by the effects of continued weakness in Oil and Natural Gas.

For Q2 2017, Graco's Contractor segment reported sales of $131.2 million, up 4% on a y-o-y basis, and its operating earnings grew 15% on a y-o-y basis.

On a geographical basis, Graco's 9% sales growth was attributed to a 7% increase in the Americas, 9% in EMEA, or 12% at constant currency basis, and 18% in Asia/Pacific, or 20% at consistent translation rates.

Cash Matters

Graco's cash flows from operations on a year-to-date basis totaled $136 million and changes in working capital were in-line with volume growth. The Company's share repurchases in FY17 till the second quarter were $90 million, partially offset by $36 million net proceeds from shares issued.

Outlook

Graco raised its full-year 2017 outlook to mid-to-high single-digit organic sales growth on a constant currency basis worldwide, from a prior outlook of mid-single-digit growth.

Stock Performance

At the closing bell, on Monday, August 07, 2017, Graco's stock was slightly up 0.74%, ending the trading session at $115.50. A total volume of 252.77 thousand shares have exchanged hands. The Company's stock price skyrocketed 5.34% in the last three months, 27.94% in the past six months, and 56.23% in the previous twelve months. Moreover, the stock soared 39.01% since the start of the year. The stock is trading at a PE ratio of 76.19 and has a dividend yield of 1.25%. The stock currently has a market cap of $6.41 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily