By Connor Hart
Shares of Graham fell after the company reported a lower-than-expected profit during its fiscal fourth quarter, as higher expenses squeezed margins.
The stock slipped 17% to $88.82 on Monday. Despite the loss, shares have still roughly doubled over the past 52 weeks.
The Batavia, N.Y., manufacturer posted a profit of $1.97 million, for its three months ended March 31, down from $4.4 million a year earlier. Quarterly earnings came in at 18 cents a share, missing the 29 cents a share that analysts polled by FactSet expected.
Adjusted earnings were 33 cents a share, compared with analyst views for 30 cents a share.
Sales increased 13% to $67.1 million, ahead of Wall Street models for $60 million.
The company attributed its higher top line primarily to continued strength across aerospace and defense markets, as well as contributions from recently acquired businesses. Sales across energy markets were largely consistent from a year ago, it added.
Gross profit fell, though, as the company's cost of goods sold rose to $51.8 million from $43.3 million. Gross margin fell to 22.7% from 27%.
Looking ahead, Graham will remain focused on disciplined execution and strategic investments that enhance capabilities and support long-term growth, Chief Executive Matthew Malone said.
The company guided for sales of $285 million to $295 million in the coming year. Analysts were looking for $281.4 million.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 08, 2026 14:22 ET (18:22 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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