Shares of Graco Inc. (GGG) plummeted around 6% in after-hours trading on Monday, following the company's disappointing fourth-quarter earnings and revenue that missed Wall Street estimates. The fluid handling equipment maker also provided a muted outlook for 2025, citing sluggish demand across various end markets.

For the quarter ended December 27, 2024, Graco reported adjusted earnings per share of $0.64, significantly lower than analysts' consensus estimate of $0.77. Net sales decreased 3% year-over-year to $548.7 million, missing expectations of $556.9 million.

The company attributed the weaker-than-expected performance to continued slower demand across many end markets. According to CEO Mark Sheahan, notable headwinds included soft demand for industrial products in China, lower sales of semiconductor equipment, and timing of projects in the powder coatings equipment business.

Looking ahead, Graco expects low single-digit sales growth on an organic, constant currency basis for fiscal 2025. While Sheahan stated that demand in China and for semiconductor products appears to have stabilized, he acknowledged that 2024 was "challenging from a growth standpoint."

The muted 2025 outlook and disappointing fourth-quarter results weighed on investor sentiment, leading to the sharp decline in Graco's stock price in after-hours trading.