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 PowerFleet (NASDAQ:PWFL) and the rest of the internet of things stocks fared in Q4.
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 8 internet of things stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 1.2%. while next quarter's revenue guidance was 2.6% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but internet of things stocks have shown resilience, with share prices up 7.3% on average since the previous earnings results.
PowerFleet (NASDAQ:PWFL) Having worked with some of the most notable companies in USPS and General Electric (NYSE:GE), PowerFleet (NASDAQ:PWFL) provides fleet and asset management systems and software for various industries.
PowerFleet reported revenues of $34.65 million, up 2.3% year on year, exceeding analysts' expectations by 2.1%. Despite the top-line beat, it was a slower quarter overall for the company with a miss of analysts' earnings estimates.
The stock is up 59.5% since reporting and currently trades at $4.61.
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Best Q4: Rockwell Automation (NYSE: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 $2.13 billion, down 6.6% year on year, outperforming analysts' expectations by 3.5%. It was an exceptional quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 4.8% since reporting. It currently trades at $264.15.
Weakest Q4: SmartRent (NYSE:SMRT) Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $50.49 million, down 22.4% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
SmartRent posted the slowest revenue growth in the group. As expected, the stock is down 2.4% since the results and currently trades at $2.39.
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 $1.74 billion, up 8.7% year on year, falling short of analysts' expectations by 2.4%. Revenue aside, it was a weak quarter for the company with a miss of analysts' organic revenue estimates.
AMETEK had the weakest performance against analyst estimates among its peers. The stock is down 4% since reporting and currently trades at $166.95.
Emerson Electric (NYSE: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 $4.38 billion, up 16.5% year on year, surpassing analysts' expectations by 2%. Taking a step back, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates.
Emerson Electric scored the fastest revenue growth among its peers. The stock is up 6.2% since reporting and currently trades at $114.08.
This content was originally published on Stock Story
