What caused GGG's EPS surprises in 2024?

Graco Inc.'s (GGG) EPS in 2024 was $2.82, with an EPS surprise of -$0.12, indicating a decline of 5.22% from the previous year. The EPS surprise can be attributed to several factors:

|code|Ticker|Name|Date|Total Revenue YoY|Diluted EPS YoY|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|---|
|GGG|GGG.N|Graco|2024 Q1|-7.072082107671916|-5.3333333333333375|4.92189E8|0.71|169|
|GGG|GGG.N|Graco|2024 Q2|-1.1437628206502706|-1.2820512820512833|5.53243E8|0.77|169|
|GGG|GGG.N|Graco|2024 Q3|-3.791191686802354|-7.792207792207799|5.19212E8|0.71|169|
|GGG|GGG.N|Graco|2024 Q4|-3.171656278015827||5.48672E8||169|

1. **Economic Cycles and Demand**: As a company specializing in fluid handling systems and components, Graco's performance is influenced by economic cycles. Consumer spending and interest rates can significantly impact the industrial production that drives demand for Graco's offerings. In 2024, the company experienced slower demand across many end markets, which contributed to the revenue and EPS shortfall.
2. **Market Challenges and Competition**: The gas and liquid handling industry is competitive, and Graco faced challenges from economic cycles and market conditions. Despite being a leading company, Graco's revenues missed analysts' expectations by 1.4%, indicating intense competition or pricing pressures.
3. **Strategic Changes and Organizational Adjustments**: Graco announced a new organizational structure aimed at driving global growth, which may have had an impact on short-term performance as the changes were implemented. Such transitions can temporarily affect financial metrics.
4. **Housing Market Trends**: The housing market, which is a significant end-user for Graco's products, influenced the company's performance. In 2024, the housing market showed resilience with high demand for affordable homes, but mortgage rates remained high, which could have affected Graco's business in the housing sector.

In conclusion, Graco's EPS surprise in 2024 was likely a result of a combination of factors including economic cycles, market challenges, strategic changes, and housing market trends. These factors, either directly or indirectly, influenced the company's financial performance, leading to the observed EPS outcome.