Graco Q4 2020 Earnings Report
Key Takeaways
Graco Inc. reported a 14 percent increase in sales for the fourth quarter, driven by double-digit growth in the Contractor segment and Asia Pacific region. The company saw improvements in spray foam, electronics, battery, and systems end markets, leading to record quarterly sales.
Sales increased by 14 percent in the quarter, led by double-digit sales growth in the Contractor segment and Asia Pacific region.
Gross profit margin rate for the quarter increased due to strong realized pricing, improved sales volume in the Industrial segment and favorable effects of changes in currency translation rates.
Operating expense leverage for the quarter remained strong.
The effective income tax rate for the quarter decreased 5 percentage points primarily due to increases in excess tax benefits related to stock option exercises.
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Graco Revenue by Segment
Forward Guidance
Graco expects challenging end market conditions to remain in place for at least the first half of 2021 in many of their end markets as lockdowns continue. The outlook for the Contractor segment remains positive as favorable conditions continue, and demand for their products is solid across major end markets and product categories.
Positive Outlook
- Favorable conditions continue in the Contractor segment.
- Demand for products is solid across major end markets.
- Positive outlook for the Contractor segment.
- Solid demand for products across major end markets.
- Favorable conditions expected to continue.
Challenges Ahead
- Challenging end market conditions expected to remain.
- Lockdowns continue to affect end markets.
- Challenging conditions expected for at least the first half of 2021.
- End market conditions expected to remain challenging.
- Lockdowns expected to continue affecting end markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income