Q2 2024 Summary
Published Feb 18, 2025, 5:24 PM UTCInitial Price$93.87March 27, 2024
Final Price$79.25June 27, 2024
Price Change$-14.62
% Change-15.57%
- Strong new product launches in the Contractor segment are driving growth even in a challenging market, with products being well received and contributing significantly to results, indicating potential for significant upside when market conditions improve.
- Signs of recovery in the semiconductor market, with orders this year slightly up compared to last year, and expectations of growth in 2025 due to new fab construction and expansion.
- Graco is continuing to invest in growth strategies, including new products, channel expansion, and new market opportunities, positioning the company well for long-term success despite current macroeconomic challenges.
- Graco lowered its full-year 2024 guidance to a low single-digit revenue decline, stating that Contractor's strength will not offset the underperformance in the Industrial and Process segments, with second quarter sales below expectations.
- Weakness in the Industrial and Process segments is expected to continue, particularly in Asia Pacific and China, where there is deteriorating demand and double-digit declines in order rates, leading to expectations that current conditions will remain for the balance of the year. , ,
- Broad-based project delays and decreased capital investments across multiple end markets, including automotive, battery production, solar energy, and semiconductor markets, are contributing to a sluggish macro environment and a challenging revenue outlook. , , ,