Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Snap-on (NYSE:SNA) 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 10 professional tools and equipment stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% 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 3.3% since the latest earnings results.
Snap-on (NYSE:SNA) Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Snap-on reported revenues of $1.28 billion, flat year on year. This print exceeded analysts’ expectations by 6.9%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ organic revenue estimates.
“While the general uncertainty continues, we’re encouraged by our second quarter 2024 results,” said Nick Pinchuk, Snap-on chairman and chief executive officer.
Snap-on scored the biggest analyst estimates beat of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 14.9% since reporting and currently trades at $59.21.
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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 pulled off 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 14.9% since reporting. It currently trades at $59.21.
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 slower 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 5% since the results and currently trades at $72.82.
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 $707.1 million, down 1.9% year on year, surpassing analysts’ expectations by 2.6%. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
The stock is down 3% since reporting and currently trades at $95.35.
Hillman (NASDAQ:HLMN) Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $379.4 million, flat year on year, falling short of analysts’ expectations by 1.5%. Taking a step back, it was a mixed quarter for the company with an impressive beat of analysts’ operating margin estimates but full-year revenue guidance missing analysts’ expectations.
Hillman had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 7.1% since reporting and currently trades at $9.71.
This content was originally published on Stock Story
