Graco, Inc. (NYSE:GGG) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET
Company Participants
Christopher Knutson - EVP, Corporate Controller
Mark Sheahan - President, CEO & Director
David Lowe - CFO & Treasurer
Conference Call Participants
Tyler Voigt - RBC Capital Markets
Matt Summerville - D.A. Davidson & Co.
Larry De Maria - William Blair & Company
Operator
Good morning, and welcome to the Third Quarter Conference Call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company's website at www.graco.com. Graco has additional information available in the PowerPoint slide presentation, which is available as part of the webcast player. At the request of the company, we will open the conference up for questions and answers after the opening remarks from management.
During this call, various remarks may be made by management about their expectations, plans and prospects for the future. These remarks constitute forward-looking statements for the purpose of the safe harbor provisions of the Private Securities Litigation Reform Act.
Actual results may differ materially from those indicated, as a result of various risk factors, including those identified in the Item 1A of the company's 2022 annual report on Form 10-K and in the Item 1A of the company's most recent quarterly report on Form 10-Q.
These reports are available on the company's website at www.graco.com and the SEC's website at www.sec.gov. Forward-looking statements reflect management's current views and speak only as of the time they are made. The company undertakes no obligation to update these statements in light of new information or future events. I will now turn the conference over to Chris Knuston, Executive Vice President, Corporate Controller.
Christopher Knutson
Good morning, everyone, and thank you for joining our call. I'm here today with Mark Sheahan and David Lowe. I will provide a brief overview of our quarterly results, before turning the call over to Mark for additional discussion.
Yesterday, Graco reported third quarter sales of $540 million, a decrease of 1% from the third quarter of last year. The effect of currency translation increased sales by 1 percentage point or approximately $5 million. Based on current exchange rates, currency translation should have no effect on full year net sales and an unfavorable impact of approximately 1 percentage point on net earnings for the full year.
Reported net earnings increased 15% to $133 million for the quarter. Diluted net earnings per share was $0.77, an increase of 15% over last year. During the quarter, we recognized a noncash goodwill impairment charge of $8 million and a $9 million gain from the reduction in the fair value of contingent consideration, related to the reorganization of a business acquired in 2020.