Q3 Earnings Outperformers: AMETEK (NYSE:AME) And The Rest Of The Internet of Things Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the internet of things stocks, including AMETEK (NYSE:AME) and its peers.

Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.

The 7 internet of things stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.9% below.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

AMETEK (NYSE:AME)

AMETEK reported revenues of $1.71 billion, up 5.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but organic revenue in line with analysts’ estimates.

"AMETEK delivered excellent results in the third quarter with double digit orders growth, outstanding operating performance, excellent cash flow conversion, and earnings ahead of expectations," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer.

The stock is up 9.9% since reporting and currently trades at $185.71.

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Best Q3: Vontier (NYSE:VNT)

Vontier reported revenues of $750 million, down 2% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and organic revenue estimates.

Vontier pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $39.07.

Weakest Q3: SmartRent (NYSE:SMRT)

SmartRent reported revenues of $40.51 million, down 30.3% year on year, falling short of analysts’ expectations by 18.2%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

SmartRent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 15.3% since the results and currently trades at $1.50.

Trimble (NASDAQ:TRMB)

Trimble reported revenues of $875.8 million, down 8.5% year on year. This number topped analysts’ expectations by 1.6%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates.

Trimble had the weakest full-year guidance update among its peers. The stock is up 26.3% since reporting and currently trades at $77.83.

Emerson Electric (NYSE:EMR)

Emerson Electric reported revenues of $4.62 billion, up 12.9% year on year. This result surpassed analysts’ expectations by 1.2%. Taking a step back, it was a mixed quarter as it also produced full-year EPS guidance slightly topping analysts’ expectations but a significant miss of analysts’ EBITDA estimates.

Emerson Electric scored the fastest revenue growth among its peers. The stock is up 18.8% since reporting and currently trades at $130.44.

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This content was originally published on Stock Story