Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Trimble (NASDAQ:TRMB) and its peers.
Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.
The 5 internet of things stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Trimble (NASDAQ:TRMB)
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.Trimble reported revenues of $983.4 million, up 5.5% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.
"Fiscal 2024 was a transformative year for Trimble. We simplified and focused the Company through portfolio moves and re-segmentation. We also delivered for our customers while strengthening the Company — as evidenced by record levels of software as a percent of total revenue, and record levels of ARR, gross margin and profitability," said Rob Painter, president and CEO of Trimble.
Trimble pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 5.6% since reporting and currently trades at $70.83.
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Best Q4: Rockwell Automation (NYSE:ROK)
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.Rockwell Automation reported revenues of $1.88 billion, down 8.3% year on year, falling short of analysts’ expectations by 0.6%. However, the business still had a strong quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 5.6% since reporting. It currently trades at $283.12.
Weakest Q4: AMETEK (NYSE:AME)
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.AMETEK reported revenues of $1.76 billion, up 1.8% year on year, falling short of analysts’ expectations by 3.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue estimates and full-year EPS guidance missing analysts’ expectations.
AMETEK delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 3.1% since the results and currently trades at $190.
Vontier (NYSE:VNT)
A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.Vontier reported revenues of $776.8 million, down 1.5% year on year. This number surpassed analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
Vontier had the weakest full-year guidance update among its peers. The stock is down 1.2% since reporting and currently trades at $37.23.
Emerson Electric (NYSE:EMR)
Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.Emerson Electric reported revenues of $4.18 billion, up 1.4% year on year. This result lagged analysts' expectations by 1.1%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is down 6.1% since reporting and currently trades at $120.
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This content was originally published on Stock Story
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