Graco (GGG) Q3 FY2023 earnings: revenue $540 million, down 1.1% on the year

Graco Inc. (GGG) reported revenue of $540 million for Q3 FY2023, the quarter ended 29 September 2023, down 1.1% on the same quarter a year earlier. Net income was $133 million, up 14.5% on the year, and diluted earnings per share $0.77. The figures are the company's own, from the 10-Q it filed with the SEC on 25 October 2023.

Revenue$540 milliondown 1.1%

Net income$133 millionup 14.5%

Diluted EPS$0.77

QuarterQ3 FY2023ended 29 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	540	n/a	n/a	n/a
Cost of revenue	255	n/a	n/a	n/a
Gross profit	285	n/a	n/a	n/a
Gross margin	52.7%	n/a	n/a
Research and development	19.8	n/a	n/a	n/a
Operating income	163	n/a	n/a	n/a
Operating margin	30.2%	n/a	n/a
Interest expense	1.4	n/a	n/a	n/a
Pre-tax income	164	n/a	n/a	n/a
Income tax	31.2	n/a	n/a	n/a
Effective tax rate	19.0%	n/a	n/a
Net income	133	n/a	n/a	n/a
Net margin	24.7%	n/a	n/a
Diluted EPS	$0.77	n/a	n/a	n/a

$ million except per share.

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	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	209	n/a	n/a	n/a
Capital expenditure	53.4	n/a	n/a	n/a
Free cash flow	156	n/a	n/a	n/a
Free cash flow margin	28.8%	n/a	n/a
Cash from investing	-53.1	n/a	n/a	n/a
Cash from financing	-150	n/a	n/a	n/a
Depreciation and amortisation	18.1	n/a	n/a	n/a
Share-based compensation	7.0	n/a	n/a	n/a
Buybacks	19.3	n/a	n/a	n/a
Dividends paid	39.7	n/a	n/a	n/a
Dividend per share	$0.23	n/a	n/a	n/a
Diluted shares, weighted	173m	n/a	n/a	n/a
Shares outstanding at period end	169m	n/a	n/a	n/a

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	Q3 FY2023	Quarter before	A year earlier	Change on the year
Shareholders' equity	2,189	n/a	n/a	n/a
Debt	0.0	n/a	n/a	n/a
Operating lease liabilities	19.0	n/a	n/a	n/a
Other liabilities	467	n/a	n/a	n/a
Total liabilities and equity	2,675	n/a	n/a	n/a
Fixed assets	708	n/a	n/a	n/a
Goodwill	361	n/a	n/a	n/a
Intangible assets	125	n/a	n/a	n/a
Cash and equivalents	526	n/a	n/a	n/a
Receivables	353	n/a	n/a	n/a
Inventory	458	n/a	n/a	n/a
Other assets	146	n/a	n/a	n/a
Total assets	2,675	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	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	540	567	492	553	519	549	528	572	543	593	540	591
Cost of revenue	255	267	226	252	243	269	251	272	254	286	260	274
Gross profit	285	300	266	301	276	279	278	300	289	307	281	317
Gross margin	53%	53%	54%	54%	53%	51%	53%	52%	53%	52%	52%	54%
R&D	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	163	170	133	161	146	130	144	157	165	159	138	175
Operating margin	30%	30%	27%	29%	28%	24%	27%	28%	30%	27%	26%	30%
Interest expense	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	164	128	140	165	151	132	151	158	168	163	140	181
Tax rate	19%	14%	13%	19%	19%	18%	18%	19%	18%	19%	15%	20%
Net income	133	110	122	133	122	109	124	128	138	132	119	145
Net margin	25%	19%	25%	24%	24%	20%	23%	22%	25%	22%	22%	25%
Diluted EPS	$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	209	160	119	139	179	185	125	183	179	196	120	178
Capital expenditure	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	156	120	81.7	103	159	171	115	163	176	184	108	161
Buybacks	19.3	75.3	0.0	17.8	13.6	0.0	238	123	0.0	62.2	11.8	319
Dividends paid	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	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

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 diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. 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-Q for the period ended 29 September 2023, filed 25 October 2023, accession 0000042888-23-000051: the filing on EDGAR. All of Graco Inc.'s filings: EDGAR company page.

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