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 John Bean (NYSE:JBT).
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.
Inflation progressed towards the Fed's 2% goal recently, leading the central bank to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive as of late, employment measures bordered on worrisome. The markets will be assessing whether this rate cut (and more potential ones in 2024 and 2025) are ideal timing to support the economy or a bit too late for a macro that has already cooled too much.
John Bean (NYSE:JBT) Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation.
John Bean reported revenues of $402.3 million, down 5.9% year on year. This print fell short of analysts’ expectations by 7%. Overall, it was a softer quarter for the company with a miss of analysts’ operating margin and earnings estimates.
"As expected, JBT's second quarter orders improved sequentially driven primarily by an initial recovery in equipment demand from North American poultry customers and continued strength in warehouse automation," said Brian Deck, President and Chief Executive Officer.
Unsurprisingly, the stock is down 5.3% since reporting and currently trades at $91.42.
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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 29.8% since reporting. It currently trades at $134.24.
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 and a miss of analysts’ earnings estimates.
Hillenbrand delivered the weakest full-year guidance update in the group. As expected, the stock is down 27.8% since the results and currently trades at $27.44.
Crane Company (NYSE:CR) Based in Connecticut, Crane Company (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Crane Company reported revenues of $581.2 million, up 14.1% year on year. This number surpassed analysts’ expectations by 2.3%. It was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ operating margin estimates.
The stock is down 3.2% since reporting and currently trades at $154.62.
General Electric (NYSE: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 $18.11 billion, up 14.2% year on year. More broadly, it was a mixed quarter as it recorded an impressive beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.
General Electric delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 14% since reporting and currently trades at $185.50.
This content was originally published on Stock Story
