Graco (GGG) Q4 FY2022 earnings: revenue $555 million, up 2.9% on the year

Graco Inc. (GGG) reported revenue of $555 million for Q4 FY2022, the quarter ended 30 December 2022, up 2.9% on the same quarter a year earlier. Net income was $126 million, up 5.0% on the year, and diluted earnings per share $0.74. The figures are the company's own, from the 10-K it filed with the SEC on 21 February 2023.

Revenue$555 millionup 2.9%

Net income$126 millionup 5.0%

Diluted EPS$0.74

QuarterQ4 FY2022ended 30 December 2022

What management said

Guidance figures: 1 new.

Record quarter and annual sales: Full-year net sales were $2,143.5 million, up 8%, and operating earnings were $572.7 million, up 8%. Fourth-quarter net sales were $555.0 million, up 3%, and operating earnings were $152.5 million, up 5%.
Fourth-quarter sales rose 3%: Quarterly growth included 6 points of organic sales growth and 1 point from acquired operations, with currency translation a 4-point headwind. At constant currency, sales rose 7%.
Gross margin fell on product costs: Gross margin fell about 2 points in the quarter and 3 points for the year. Realized pricing did not offset higher product costs and currency translation.

Read the earnings call summary

The quarter, against the one before and a year earlier

Line	Q4 FY2022	Q3 FY2022	Q4 FY2021	Change on the year
Revenue	555	546	540	+2.9%
Cost of revenue	282	285	265	+6.5%
Gross profit	273	261	275	-0.6%
Gross margin	49.2%	47.8%	50.9%
Research and development	21.3	19.7	18.9	+12.4%
Operating income	153	143	145	+5.5%
Operating margin	27.5%	26.2%	26.8%
Interest expense	1.3	1.5	2.8	-51.4%
Pre-tax income	154	142	129	+19.2%
Income tax	27.8	26.2	9.0	+209.0%
Effective tax rate	18.0%	18.4%	7.0%
Net income	126	116	120	+5.0%
Net margin	22.7%	21.3%	22.3%
Diluted EPS	$0.74	$0.67	$0.69	+7.2%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2022	Q3 FY2022	Q4 FY2021	Change on the year
Operating cash flow	106	137	99.7	+6.2%
Capital expenditure	54.0	58.3	50.9	+5.9%
Free cash flow	51.9	78.2	48.7	+6.5%
Free cash flow margin	9.3%	14.3%	9.0%
Cash from investing	-53.9	-58.4	-51.2	n/a
Cash from financing	-129	-75.5	-28.7	n/a
Depreciation and amortisation	17.8	16.8	14.5	+22.8%
Share-based compensation	5.2	5.1	5.0	+3.3%
Buybacks	78.2	35.2	0.0	n/a
Dividends paid	35.3	35.5	31.9	+10.7%
Dividend per share	n/a	$0.21	n/a	n/a
Diluted shares, weighted	171m	173m	175m	-1.8%
Shares outstanding at period end	168m	169m	170m	-1.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2022	Q3 FY2022	Q4 FY2021	Change on the year
Shareholders' equity	1,860	1,788	1,709	+8.8%
Debt	96.0	118	150	-36.0%
Operating lease liabilities	21.1	22.1	23.5	-10.5%
Other liabilities	462	510	560	-17.5%
Total liabilities and equity	2,439	2,438	2,443	-0.2%
Fixed assets	608	563	451	+34.7%
Goodwill	368	360	356	+3.3%
Intangible assets	138	137	150	-8.2%
Cash and equivalents	339	415	624	-45.7%
Receivables	346	364	325	+6.4%
Inventory	477	462	382	+24.7%
Other assets	164	138	154	+6.0%
Total assets	2,439	2,438	2,443	-0.2%

Questions

What was Graco's revenue in Q4 FY2022?

Graco (GGG) reported revenue of $555 million for Q4 FY2022, the quarter ended 30 December 2022, up 2.9% on the same quarter a year earlier.

How much did Graco earn in Q4 FY2022?

Net income for Q4 FY2022 was $126 million, up 5.0% on the year, and diluted earnings per share $0.74.

When did Graco report Q4 FY2022 results?

Graco filed its 10-K for the year that ended with the quarter on 21 February 2023; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q3 FY2021	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	487	540	494	549	546	555	530	560	540	567	492	553	519	549	528	572	543	593	540	591
Cost of revenue	238	265	240	279	285	282	245	268	255	267	226	252	243	269	251	272	254	286	260	274
Gross profit	248	275	254	269	261	273	285	291	285	300	266	301	276	279	278	300	289	307	281	317
Gross margin	51%	51%	51%	49%	48%	49%	54%	52%	53%	53%	54%	54%	53%	51%	53%	52%	53%	52%	52%	54%
R&D	19.8	18.9	19.1	20.0	19.7	21.3	20.5	21.3	19.8	21.2	21.9	21.9	21.3	22.2	19.4	20.7	20.3	21.9	20.0	19.8
Operating income	125	145	128	149	143	153	157	157	163	170	133	161	146	130	144	157	165	159	138	175
Operating margin	26%	27%	26%	27%	26%	27%	30%	28%	30%	30%	27%	29%	28%	24%	27%	28%	30%	27%	26%	30%
Interest expense	2.5	2.8	5.3	1.7	1.5	1.3	1.3	1.8	1.4	0.7	0.7	0.6	0.7	0.8	0.7	0.7	0.7	0.8	0.8	0.8
Pre-tax income	122	129	123	146	142	154	157	160	164	128	140	165	151	132	151	158	168	163	140	181
Tax rate	15%	7%	18%	20%	18%	18%	18%	16%	19%	14%	13%	19%	19%	18%	18%	19%	18%	19%	15%	20%
Net income	104	120	101	117	116	126	129	134	133	110	122	133	122	109	124	128	138	132	119	145
Net margin	21%	22%	20%	21%	21%	23%	24%	24%	25%	19%	25%	24%	24%	20%	23%	22%	25%	22%	22%	25%
Diluted EPS	$0.59	$0.69	$0.58	$0.68	$0.67	$0.74	$0.75	$0.78	$0.77	$0.64	$0.71	$0.77	$0.71	$0.63	$0.72	$0.76	$0.82	$0.79	$0.70	$0.87
Operating cash flow	137	99.7	31.3	104	137	106	90.8	191	209	160	119	139	179	185	125	183	179	196	120	178
Capital expenditure	27.9	50.9	47.1	41.8	58.3	54.0	38.3	53.9	53.4	39.1	37.2	36.3	19.3	13.9	10.6	19.6	3.5	12.0	12.1	16.4
Free cash flow	109	48.7	-15.8	61.9	78.2	51.9	52.5	138	156	120	81.7	103	159	171	115	163	176	184	108	161
Buybacks	0.0	0.0	109	11.3	35.2	78.2	7.8	0.0	19.3	75.3	0.0	17.8	13.6	0.0	238	123	0.0	62.2	11.8	319
Dividends paid	31.8	31.9	35.8	35.5	35.5	35.3	39.4	39.6	39.7	39.6	42.9	43.1	43.0	43.1	46.6	45.6	45.6	45.6	48.8	48.9
Shares outstanding	170m	170m	169m	169m	169m	168m	168m	169m	169m	168m	169m	169m	169m	169m	167m	166m	166m	165m	166m	162m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 30 December 2022, filed 21 February 2023, accession 0000042888-23-000008: the filing on EDGAR. All of Graco Inc.'s filings: EDGAR company page.