The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how heavy machinery stocks fared in Q1, starting with Oshkosh (NYSE:OSK).
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 7 heavy machinery stocks we track reported a strong Q1; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the heavy machinery stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.7% on average since the previous earnings results.
Oshkosh (NYSE:OSK) Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Oshkosh reported revenues of $2.54 billion, up 12.2% year on year, topping analysts' expectations by 2.2%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
“We're off to a strong start in 2024, as we grew adjusted operating income by over 80 percent leading to adjusted earnings per share of $2.89 in the first quarter. Our results were driven by outstanding execution as well as healthy demand and strategic acquisitions,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation.
The stock is down 11.4% since the results and currently trades at $107.5.
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Best Q1: Terex (NYSE:TEX) With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.29 billion, up 4.6% year on year, outperforming analysts' expectations by 5%. It was a stunning quarter for the company, with an impressive beat of analysts' organic revenue estimates.
Terex pulled off the biggest analyst estimates beat among its peers. The stock is down 11.2% since the results and currently trades at $53.13.
Weakest Q1: Lindsay (NYSE:LNN) A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $151.5 million, down 8.9% year on year, falling short of analysts' expectations by 12.3%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.
Lindsay had the weakest performance against analyst estimates in the group. The stock is down 1.4% since the results and currently trades at $113.61.
Greenbrier (NYSE:GBX) Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $862.7 million, down 23.1% year on year, surpassing analysts' expectations by 2.5%. It was a very strong quarter for the company, with an impressive beat of analysts' volume and earnings estimates.
Greenbrier had the slowest revenue growth among its peers. The stock is down 3.3% since the results and currently trades at $50.6.
Caterpillar (NYSE:CAT) With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $15.8 billion, down 0.4% year on year, falling short of analysts' expectations by 1.2%. It was an ok quarter for the company, with an impressive beat of analysts' operating margin estimates but a miss of analysts' organic revenue estimates.
The stock is down 9.5% since the results and currently trades at $328.99.
