Graco Earnings: Full-Year Outlook Maintained Despite Slow Start to the Year

Wide-moat-rated Graco posted disappointing first-quarter results, as its net sales of $492 million and adjusted EPS of $0.65 both fell short of the FactSet consensus estimates of $536 million and $0.74, respectively. We’ve lowered our fair value estimate to $78 from $80, which reflects our more muted near-term revenue growth and operating margin projections, partially offset by time value of money. The stock fell nearly 7% following the earnings release on April 25 and is now trading in 3-star territory.