The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how KB Home (NYSE:KBH) and the rest of the industrials stocks fared in Q2.
Traditionally, industrials companies--while diverse in nature--have built competitive advantages via some combination of economies of scale, brand recognition, and strong relationships with customers such as manufacturers or contractors. In recent decades, secular trends like energy efficiency and automation are driving innovation, leading to incremental demand. However, these companies are still at the whim of macroeconomic health, which tends to be cyclical and can be impacted heavily by factors such as interest rates. Shocks like geopolitical conflicts can also impact this increasingly global industry.
The 8 industrials stocks we track reported a mixed Q2; on average, revenues were in line with analyst consensus estimates. 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, and industrials stocks have held roughly steady amidst all this, with share prices up 1.2% on average since the previous earnings results.
Best Q2: KB Home (NYSE:KBH) The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.
KB Home reported revenues of $1.71 billion, down 3.1% year on year, topping analysts' expectations by 3.4%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates.
“We produced solid results in our 2024 second quarter, with our key metrics above the high end of our guidance ranges,” said Jeffrey Mezger, Chairman and Chief Executive Officer.
KB Home pulled off the biggest analyst estimates beat of the whole group. The stock is down 2.4% since the results and currently trades at $66.41.
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Lennar (NYSE:LEN) One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.
Lennar reported revenues of $8.77 billion, up 9% year on year, outperforming analysts' expectations by 2.5%. It was a slower quarter for the company, with a miss of analysts' backlog sales estimates.
Lennar pulled off the fastest revenue growth among its peers. The stock is down 8.2% since the results and currently trades at $143.61.
Slowest Q2: Lindsay (NYSE:LNN) A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $139.2 million, down 15.4% year on year, falling short of analysts' expectations by 3.6%. It was a slower quarter for the company, with a miss of analysts' organic revenue estimates.
Lindsay had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 1.7% since the results and currently trades at $115.16.
Winnebago (NYSE:WGO) Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Winnebago reported revenues of $786 million, down 12.7% year on year, falling short of analysts' expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' operating margin estimates and a miss of analysts' earnings estimates.
The stock is down 5.7% since the results and currently trades at $53.44.
Acuity Brands (NYSE:AYI) One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries.
Acuity Brands reported revenues of $968.1 million, down 3.2% year on year, falling short of analysts' expectations by 2.9%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.
The stock is up 1% since the results and currently trades at $242.51.
This content was originally published on Stock Story
