Post-earnings recap
Reported
Wed, Jul 22, 2026
EPS actual
$0.91
EPS est.
$0.81
EPS surprise
+12.07%
1-day move
+1.03%
Graco Inc. reported a strong earnings per share, beating expectations by over 12%. This positive result led to a modest stock increase of 1.03%. However, without revenue figures or management commentary, investors may need to wait for further details to assess the company's future outlook.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $0.91 | N/A | +12.07% |
| Revenue | N/A | N/A | N/A |
No transcript is on record for this earnings call, so the analysis is based solely on numerical results.
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Est. EPS
$4.19
Est. Rev
$1.2B
Impl. Move
±16.2%
Graco Inc. is a leading manufacturer of fluid handling systems and products, primarily serving industries such as construction, automotive, and manufacturing. With a market cap of $13 billion, Graco plays a crucial role in the industrial machinery sector, focusing on efficiency and innovation in fluid management.
Last quarter
In Q1 2026, Graco reported an EPS of $0.66, missing expectations by 12%. Following this, the stock declined by nearly 2% the next day, indicating investor disappointment.
EPS beat streak
1Q
EPS beat rate
25%
Avg EPS surprise
-3.12%
Avg 1-day reaction
-0.55%
Overall, analysts are cautious about Graco's upcoming earnings due to recent misses and lack of guidance. Investors will be looking for signs of recovery in EPS and revenue.
Bull case
If Graco can exceed EPS expectations and demonstrate strong revenue growth, it could signal a turnaround and boost investor confidence.
Bear case
Conversely, if Graco continues to miss earnings expectations, it may indicate deeper issues within the company, leading to further stock declines.
Key metrics to watch
Earnings Per Share (EPS)
$0.75EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.
Revenue Growth
N/ARevenue growth reflects the company's ability to increase sales and expand its market presence, which is vital for long-term success.
The print will turn on these.
Q1
Will Graco's EPS exceed $0.75?
A beat on EPS would indicate improved profitability and could restore investor confidence after recent misses.
Q2
What is the outlook for revenue growth?
Understanding revenue trends is crucial for assessing Graco's market position and future potential.
Why consensus could be wrong
The Street may be underestimating Graco's potential for a rebound, as recent operational improvements could lead to better-than-expected results.
Supporting evidence
The options market is pricing a 1.6% move, while historical data shows larger fluctuations in response to earnings.
Graco has a history of surprising investors, with a 25% beat rate that suggests potential upside.
Key risk
If Graco reports an EPS above $0.75, it could challenge the current bearish sentiment and shift market expectations.
Pre-commit to what would confirm each case.
This quarter's performance is critical for Graco, as it follows a series of earnings misses and will set the tone for future expectations.
Bull confirmed if
An EPS of $0.75 or higher would confirm the bull case and indicate a recovery in profitability.
Bear confirmed if
An EPS below $0.66 would reinforce concerns about ongoing challenges and confirm the bear case.
What the market is pricing for the move.
Implied Move
±1.6%
Historical Avg
±0.9%
The options market is pricing in a modest move of about 1.6% following the earnings report, suggesting uncertainty among investors.
Options are pricing ±1.6% while GGG has averaged ±0.9% over the last 8 prints — setup is pricing rich.
ATM IV
0.3%
30d HV
19.9%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Graco beats EPS expectations, history suggests the stock could rise by about 0.91% on the following day, confirming a positive trend.
In line / cautious
If results are in line with expectations but lack strong guidance, the stock may see muted movement as investors remain cautious.
Miss
Should Graco miss again, history indicates a potential decline of around 0.90%, further shaking investor confidence.
The lines on the call that would change the story.
Gross Margin
Gross margin indicates how efficiently Graco is producing its products and managing costs, which can impact overall profitability.