Wrapping up Q4 earnings, we look at the numbers and key takeaways for the internet of things stocks, including Emerson Electric (NYSE:EMR) 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.
While some internet of things stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.
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 print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
"Emerson began the fiscal year on a strong note, exceeding first quarter expectations for incremental operating margins and earnings per share with strong cash flow generation," said Emerson President and Chief Executive Officer Lal Karsanbhai.
The stock is down 6% since reporting and currently trades at $120.08.
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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 an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $283.70.
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 result surpassed analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also recorded a solid 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 flat since reporting and currently trades at $37.83.
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 beat analysts’ expectations by 4.2%. Zooming out, it was a satisfactory quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.
Trimble delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 23.8% since reporting and currently trades at $57.27.
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This content was originally published on Stock Story
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