What factors contributed to GRC's earnings trend in 2024?

The Gorman-Rupp Company (GRC) experienced a mixed earnings trend in 2024, with some quarters performing better than others. Here are the key factors that contributed to its earnings trend:

1. **Q1 2024 Earnings**: GRC reported earnings per share (EPS) of $0.30 for the first quarter of 2024, which was below the analyst estimate of $0.34. The company's revenue for the quarter was $159.27 million, missing the analyst estimate of $168.49 million by 5.33%. This decline in earnings and revenue was due to a decrease in volume, despite pricing increases taken in the first quarter of 2024.
2. **Q2 2024 Earnings**: In the second quarter, GRC reported EPS of $0.54, which was above the analyst estimate of $0.33. The company's revenue for the quarter was $169.51 million, slightly below the analyst estimate of $176.22 million. The increase in earnings was due to strong incoming orders, particularly in the municipal market, which increased by $6.7 million.
3. **Q3 2024 Earnings**: For the third quarter, GRC reported EPS of $0.49, which was below the analyst estimate of $0.52. The company's revenue for the quarter was $168.2 million, missing the analyst estimate of $172.5 million by 2.5%. This decline in earnings and revenue was due to flat sales year-over-year, despite a 4.9% increase in gross margin.
4. **Overall Trends**: GRC's earnings were influenced by factors such as economic cycles, consumer spending, and interest rates, which impacted the demand for its products. The company's performance was also affected by the backlog of orders, with some quarters experiencing increases in incoming orders, such as the second quarter, while others, like the third quarter, saw flat sales year-over-year.

In summary, GRC's earnings trend in 2024 was influenced by both positive factors, such as strong incoming orders and pricing increases, and negative factors, such as decreased volume and missed revenue estimates. The company's performance was also impacted by broader economic factors and the timing of orders.