As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional tools and equipment industry, including Hillman (NASDAQ:HLMN) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are 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 9 professional tools and equipment stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.9% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.
Hillman (NASDAQ:HLMN) Established when Max Hillman purchased a franchise operation, Hillman (NASDAQGM:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $379.4 million, flat year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a weaker quarter for the company with full-year revenue guidance missing analysts’ expectations.
"During the second quarter we delivered outstanding bottom-line performance resulting from improved efficiencies and strong margins," commented Doug Cahill, Chairman, President, and Chief Executive Officer of Hillman.
Hillman delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.3% since reporting and currently trades at $9.37.
Is now the time to buy Hillman? Find out by reading the original article on StockStory, it’s free. Best Q2: Hyster-Yale Materials Handling (NYSE:HY)Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.12 billion, up 2.5% year on year, outperforming analysts’ expectations by 3.5%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
Hyster-Yale Materials Handling scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.9% since reporting. It currently trades at $60.59.
Weakest Q2: Fortive (NYSE:FTV)Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.
Fortive reported revenues of $1.55 billion, up 1.7% year on year, in line with analysts’ expectations. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue estimates.
As expected, the stock is down 9% since the results and currently trades at $69.79.
Kennametal (NYSE:KMT)Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $543.3 million, down 1.3% year on year, surpassing analysts’ expectations by 2%. Taking a step back, it was a decent quarter for the company with optimistic earnings guidance for the next quarter but underwhelming earnings guidance for the full year.
Kennametal achieved the highest full-year guidance raise among its peers. The stock is up 4.3% since reporting and currently trades at $25.
Stanley Black & Decker (NYSE:SWK)Based in Connecticut, Stanley Black and Decker (NYSE:SWK)
Stanley Black & Decker reported revenues of $4.02 billion, down 3.2% year on year, in line with analysts’ expectations. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and a solid beat of analysts’ organic revenue estimates.
The stock is flat since reporting and currently trades at $97.
This content was originally published on Stock Story
