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 L.B. Foster (NASDAQ:FSTR) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 14 general industrial machinery stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 1.4%. 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 general industrial machinery stocks have held roughly steady amidst all this, with share prices up 2.8% on average since the previous earnings results.
Best Q1: L.B. Foster (NASDAQ:FSTR) Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
L.B. Foster reported revenues of $124.3 million, up 7.6% year on year, exceeding analysts' expectations by 12.7%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
John Kasel, President and Chief Executive Officer, commented, "We had an exceptionally-strong start to 2024 with organic growth and profitability expansion as the key highlights of the first quarter. After a sluggish finish to 2023, our Rail business rebounded in the first quarter delivering 29.4% organic sales growth and 22.5% gross margins which were up 30 bps over last year and up 330 bps sequentially. Results in the Infrastructure business were somewhat softer with sales essentially flat year over year on an organic basis as adverse weather conditions impacted volumes in our Precast Concrete business. However, we grew our Precast backlog 17.0% during the quarter which should lead to increased volumes in the coming quarters as we expect more favorable conditions during the traditional construction season in the second and third quarter. Improved sales and profitability across our Steel Products businesses helped to offset the weaker Precast results within Infrastructure in the quarter. All in all, I'm pleased with our first quarter results and continuing progress along our transformation journey."
L.B. Foster pulled off the biggest analyst estimates beat of the whole group. The stock is down 2% since reporting and currently trades at $23.83.
Is now the time to buy L.B. Foster? Find out by reading the original article on StockStory, it's free.
Crane Company (NYSE:CR) Based in Connecticut, Crane Company (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Crane Company reported revenues of $565.3 million, up 10% year on year, outperforming analysts' expectations by 3.5%. It was a very strong quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 12.5% since reporting. It currently trades at $147.04.
Weakest Q1: Hillenbrand (NYSE:HI) With its casket company notably burying several presidents, Hillenbrand (NYSE:HI) manufactures and sells industrial equipment to various industries.
Hillenbrand reported revenues of $785.3 million, up 13.7% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 10.6% since the results and currently trades at $42.68.
General Electric (NYSE:GE) One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
General Electric reported revenues of $16.05 billion, up 10.8% year on year, surpassing analysts' expectations by 2.2%. More broadly, it was an impressive quarter for the company with a solid beat of analysts' earnings estimates.
The stock is up 6.1% since reporting and currently trades at $159.18.
Dover (NYSE:DOV) A company who manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.
Dover reported revenues of $2.09 billion, flat year on year, surpassing analysts' expectations by 2.9%. Zooming out, it was a very strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 7.6% since reporting and currently trades at $184.52.
This content was originally published on Stock Story
