🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Q2 Rundown: ESCO (NYSE:ESE) Vs Other Engineered Components and Systems Stocks

Published 2024-08-23, 04:14 a/m

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the engineered components and systems stocks, including ESCO (NYSE:ESE) and its peers.

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 13 engineered components and systems stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9% 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. However, engineered components and systems stocks have held steady amidst all this with share prices up 3.4% on average since the latest earnings results.

ESCO (NYSE:ESE) A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.

ESCO reported revenues of $260.8 million, up 4.8% year on year. This print fell short of analysts’ expectations by 6%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 5% since reporting and currently trades at $117.83.

Is now the time to buy ESCO? Find out by reading the original article on StockStory, it’s free.

Best Q2: Arrow Electronics (NYSE:ARW) Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.

Arrow Electronics reported revenues of $6.89 billion, down 19% year on year, outperforming analysts’ expectations by 5.7%. It was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.

Arrow Electronics scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.6% since reporting. It currently trades at $130.62.

Weakest Q2: Worthington (NYSE:WOR) Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Worthington reported revenues of $318.8 million, down 13.6% year on year, falling short of analysts’ expectations by 9.6%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

Worthington had the weakest performance against analyst estimates in the group. As expected, the stock is down 10.4% since the results and currently trades at $44.91.

Gates Industrial Corporation (NYSE:GTES) Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE:GTES) offers power transmission and fluid transfer equipment for various industries.

Gates Industrial Corporation reported revenues of $898.6 million, down 4% year on year, in line with analysts’ expectations. More broadly, it was a slower quarter for the company with underwhelming EBITDA guidance for the full year.

The stock is down 1.1% since reporting and currently trades at $17.53.

Regal Rexnord (NYSE:RRX) Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products.

Regal Rexnord reported revenues of $1.55 billion, down 12.5% year on year, surpassing analysts’ expectations by 2.7%. More broadly, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates.

The stock is flat since reporting and currently trades at $160.12.

This content was originally published on Stock Story

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.