Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Nordson (NASDAQ:NDSN) 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 Q1; on average, revenues missed analyst consensus estimates by 0.7%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the professional tools and equipment stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.5% on average since the previous earnings results.
Nordson (NASDAQ:NDSN) Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Nordson reported revenues of $650.6 million, flat year on year, falling short of analysts' expectations by 2.2%. Overall, it was a slower quarter for the company with many shareholders expecting a better outcome.
Commenting on the Company’s fiscal 2024 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “Once again, the teams delivered a solid operating performance, delivering strong gross margins and 31% EBITDA margin. Our sales were in line with management expectations with the IPS and MFS segments delivering organic growth. While we see positive early indicators, our Advanced Technology Solutions segment remains impacted by the electronics cycle. I am pleased with our ability to manage profitability during this period.”
The stock is down 8.9% since reporting and currently trades at $244.56.
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Best Q1: 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 $1.06 billion, up 5.7% year on year, outperforming analysts' expectations by 2.4%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates.
Hyster-Yale Materials Handling pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 24.1% since reporting. It currently trades at $73.34.
Weakest Q1: Middleby (NASDAQ:MIDD) Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.
Middleby reported revenues of $926.9 million, down 8% year on year, falling short of analysts' expectations by 5.5%. It was a weak quarter for the company with a miss of analysts' earnings and organic revenue estimates.
Middleby had the slowest revenue growth in the group. As expected, the stock is down 6.5% since the results and currently trades at $132.71.
Stanley Black & Decker (NYSE:SWK) Based in Connecticut, Stanley Black and Decker (NYSE:SWK)
Stanley Black & Decker reported revenues of $3.87 billion, down 1.6% year on year, in line with analysts' expectations. Overall, it was a strong quarter for the company with a solid beat of analysts' organic revenue estimates and a narrow beat of analysts' earnings estimates .
The stock is down 2.6% since reporting and currently trades at $89.54.
ESAB (NYSE:ESAB) Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
ESAB reported revenues of $689.7 million, flat year on year, surpassing analysts' expectations by 5.5%. More broadly, it was a strong quarter for the company with a solid beat of analysts' earnings estimates and in-line EBITDA guidance for the full year.
ESAB pulled off the biggest analyst estimates beat among its peers. The stock is down 5.6% since reporting and currently trades at $99.97.
This content was originally published on Stock Story
