As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the engineered components and systems industry, including Graham Corporation (NYSE:GHM) and its peers.
Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.
The 11 engineered components and systems stocks we track reported a slower 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, but engineered components and systems stocks have shown resilience, with share prices up 6.2% on average since the previous earnings results.
Best Q1: Graham Corporation (NYSE:GHM) Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Graham Corporation reported revenues of $49.07 million, up 14% year on year, exceeding analysts' expectations by 10.3%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
“Steady execution on our plan set two years ago has brought significant progress,” commented Daniel J. Thoren, President and Chief Executive Officer.
Graham Corporation pulled off the biggest analyst estimates beat of the whole group. The stock is up 14.7% since reporting and currently trades at $29.85.
Is now the time to buy Graham Corporation? Find out by reading the original article on StockStory, it's free. Mayville Engineering (NYSE:MEC)Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE:MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Mayville Engineering reported revenues of $161.3 million, up 13.1% year on year, in line with analysts' expectations. It was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming EBITDA guidance for the full year.
The market seems happy with the results as the stock is up 36.2% since reporting. It currently trades at $18.63.
Weakest Q1: Enpro (NYSE:NPO)Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries.
Enpro reported revenues of $257.5 million, down 8.9% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 5.5% since the results and currently trades at $161.99.
NN (NASDAQ:NNBR)Formerly known as Nuturn, NN (NASDAQGS:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
NN reported revenues of $121.2 million, down 4.6% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 6.8% since reporting and currently trades at $4.06.
Arrow Electronics (NYSE:ARW)Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.
Arrow Electronics reported revenues of $6.92 billion, down 20.7% year on year, falling short of analysts' expectations by 1.7%. More broadly, it was a weak quarter for the company with a miss of analysts' Components revenue estimates.
Arrow Electronics had the slowest revenue growth among its peers. The stock is down 2.3% since reporting and currently trades at $122.07.
This content was originally published on Stock Story
