Graco Inc. (NYSE: GGG) stock fell 0.12% in the pre-market session of 29^th January 2019 (Source: Google finance) after the company met the earnings estimates for the fourth quarter of FY 18. Gross margin rate during the quarter declined by 2 percentage points compared to the comparable period last year mostly due to the effects of product mix and higher material costs. Additionally, in the fourth quarter, GGG had purchased 2.2 million of its common shares in open market transactions, at an average price under $40 per share. Purchases for the year 2018 has totaled $245 million and reduced share count by 5.7 million.

GGG in the fourth quarter of FY 18 has reported the adjusted earnings per share of 43 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 43 cents. The company had reported the adjusted revenue growth of 8 percent to $406.4 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $405.19 million. The company has achieved its stated revenue growth target for the year, as sales for fourth quarter rose in all segments and regions. Effects of currency translation reduced sales growth for the quarter by 2 percentage points and increased growth for the year by 1 percentage point. The acquired operations contributed 2 percentage points of growth to the quarter and 3 percentage points to the year. Gross margin rate for the quarter declined by 2 percentage points compared to the comparable period last year mostly due to the effects of product mix and higher material costs.

Moreover, the sales rose 6 percent in the Americas, 11 percent in EMEA (14 percent at consistent translation rates) and 13 percent in Asia Pacific (16 percent at consistent translation rates). Sales for the year grew 12 percent (11 percent at consistent translation rates), with rise of 9 percent in the Americas, 15 percent in EMEA (11 percent at consistent translation rates) and 19 percent in Asia Pacific (17 percent at consistent translation rates). For the quarter, changes in currency translation have decreased sales by approximately $5 million (2 percentage points). For the year, changes in currency translation increased sales by approximately $15 million (1 percentage point). Acquired operations has contributed 2 percentage points of sales growth for the quarter and 3 percentage points for the year

GGG for the full-year 2019, expects revenue to be of mid single-digits on an organic, constant currency basis, with growth expected in every region and reportable segment