As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at general industrial machinery stocks, starting with Hillenbrand (NYSE:HI).
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 13 general industrial machinery stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2.5%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the general industrial machinery stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.5% on average since the previous earnings results.
Hillenbrand (NYSE:HI) With its casket company notably burying several presidents, Hillenbrand (NYSE:HI) manufactures and sells industrial equipment to various industries.
Hillenbrand reported revenues of $785.3 million, up 13.7% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
"We continued to experience a dynamic demand environment across key end markets in our second quarter. Orders improved sequentially in both segments, however, demand for mid-size capital equipment projects in APS and short-cycle hot runner equipment in MTS remained below our expectations." said Kim Ryan, President and Chief Executive Officer of Hillenbrand.
The stock is down 20.3% since the results and currently trades at $38.07.
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Best Q1: General Electric (NYSE:GE) Tracing its roots back to the work of Thomas Edison, General Electric (NYSE:GE) is a provider of components and solutions for the aerospace, renewable energy, and power sectors.
General Electric reported revenues of $16.05 billion, up 17.2% year on year, outperforming analysts' expectations by 2.2%. It was an exceptional quarter for the company, with a solid beat of analysts' earnings estimates.
General Electric achieved the fastest revenue growth among its peers. The stock is up 5.7% since the results and currently trades at $158.6.
Slowest Q1: Icahn Enterprises (NASDAQ:IEP) Founded and mainly owned by renowned investor Carl Icahn, Icahn (NYSE:IEP) is a holding company that has investments in the energy, automotive, food packaging, and metal industries.
Icahn Enterprises reported revenues of $2.47 billion, down 7.7% year on year, falling short of analysts' expectations by 11.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 4.5% since the results and currently trades at $16.4.
Albany (NYSE:AIN) Holding a Guinness World Record for creating the world’s longest paper machine (1,800 feet), Albany (NYSE:AIN) is a provider of equipment and engineered products for the industrial and aerospace sectors.
Albany reported revenues of $313.3 million, up 16.4% year on year, falling short of analysts' expectations by 0.1%. It was a slower quarter for the company, with underwhelming EBITDA guidance for the full year.
The stock is down 6.2% since the results and currently trades at $82.83.
Illinois Tool Works (NYSE:NYSE:ITW) Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE:ITW) manufactures engineered components and specialized equipment for numerous industries.
Illinois Tool Works reported revenues of $3.97 billion, down 1.1% year on year, falling short of analysts' expectations by 1.4%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.
The stock is down 6% since the results and currently trades at $234.01.
