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 general industrial machinery stocks fared in Q2, starting with Columbus McKinnon (NASDAQ:CMCO).
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 a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 4% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
general industrial machinery stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Columbus McKinnon (NASDAQ:CMCO) With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Columbus McKinnon reported revenues of $239.7 million, up 1.8% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ operating margin estimates.
“We executed solidly in the first quarter delivering continued sales growth and gross margin expansion while advancing our longer-term strategic objectives,” said David J. Wilson, President and Chief Executive Officer.
The stock is down 9.3% since reporting and currently trades at $35.57.
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Best Q2: 3M (NYSE:MMM) Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
3M reported revenues of $6.02 billion, down 24.7% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 32.7% since reporting. It currently trades at $137.18.
Weakest Q2: Hillenbrand (NYSE:HI) Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.
Hillenbrand reported revenues of $786.6 million, up 9.8% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Hillenbrand delivered the weakest full-year guidance update in the group. As expected, the stock is down 25.6% since the results and currently trades at $28.30.
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 $2.55 billion, flat year on year. This result topped analysts’ expectations by 13.9%. More broadly, it was a weak quarter as it produced a miss of analysts’ earnings estimates.
The stock is down 21.6% since reporting and currently trades at $13.11.
Honeywell (NASDAQ:HON) Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is an aerospace and defense manufacturing company building technologies, performance materials, and safety and productivity solutions.
Honeywell reported revenues of $9.58 billion, up 4.7% year on year. This result surpassed analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates.
Honeywell achieved the highest full-year guidance raise among its peers. The stock is down 2.6% since reporting and currently trades at $207.99.
This content was originally published on Stock Story
