As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the general industrial machinery industry, including General Electric (NYSE:GE) and its peers.
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 14 general industrial machinery stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 1.4%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but general industrial machinery stocks have shown resilience, with share prices up 5.7% on average since the previous earnings results.
General Electric (NYSE:GE) One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
General Electric reported revenues of $16.05 billion, up 10.8% year on year, exceeding analysts' expectations by 2.2%. Overall, it was an impressive quarter for the company with a solid beat of analysts' earnings estimates.
The stock is up 4.6% since reporting and currently trades at $156.99.
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Best Q1: L.B. Foster (NASDAQ:FSTR) Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
L.B. Foster reported revenues of $124.3 million, up 7.6% year on year, outperforming analysts' expectations by 12.7%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
L.B. Foster achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 3% since reporting. It currently trades at $23.59.
Slowest Q1: Icahn Enterprises (NASDAQ:IEP) Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.
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.
Interestingly, the stock is up 3.7% since the results and currently trades at $17.81.
Otis (NYSE:OTIS) Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company.
Otis reported revenues of $3.44 billion, up 2.7% year on year, in line with analysts' expectations. More broadly, it was a weaker quarter for the company with underwhelming earnings guidance for the full year and full-year revenue guidance missing analysts' expectations.
The stock is up 1.5% since reporting and currently trades at $98.93.
Kadant (NYSE:KAI) Headquartered in Massachusetts, Kadant (NYSE:KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Kadant reported revenues of $249 million, up 8.4% year on year, surpassing analysts' expectations by 1.4%. Revenue aside, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is up 24.5% since reporting and currently trades at $339.46.
This content was originally published on Stock Story
