As the Q3 earnings season comes to a close, it’s time to take stock of 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 15 general industrial machinery stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.5% below.
In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest 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 $8.94 billion, down 3.9% year on year. This print fell short of analysts’ expectations by 4.7%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 14.5% since reporting and currently trades at $166.19.
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Best Q3: Luxfer (NYSE:LXFR)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.Luxfer reported revenues of $99.4 million, up 2.1% year on year, outperforming analysts’ expectations by 15.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Luxfer delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $13.09.
Weakest Q3: 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 $2.22 billion, down 25.7% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the slowest revenue growth in the group. As expected, the stock is down 32.4% since the results and currently trades at $8.71.
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 $837.6 million, up 9.8% year on year. This number topped analysts’ expectations by 5.6%. More broadly, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
Hillenbrand had the weakest full-year guidance update among its peers. The stock is up 2% since reporting and currently trades at $30.78.
Honeywell (NASDAQ:HON)
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.Honeywell reported revenues of $9.73 billion, up 5.6% year on year. This print lagged analysts' expectations by 1.8%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
The stock is up 2.8% since reporting and currently trades at $226.35.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
