Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at ESAB (NYSE:ESAB) and the best and worst performers in the professional tools and equipment industry.
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%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts 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.
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, exceeding analysts' expectations by 5.5%. Overall, 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 is off to a great start to 2024, with our results reflecting the power of ESAB Business Excellence to drive growth and margin expansion,” stated Shyam P. Kambeyanda, President and CEO of ESAB.
ESAB pulled off the biggest analyst estimates beat of the whole group. The stock is down 5.6% since reporting and currently trades at $99.97.
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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 scored 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. Revenue aside, 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.
Hillman (NASDAQ:HLMN) Established when Max Hillman purchased a franchise operation, Hillman (NASDAQGM:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $350.3 million, flat year on year, falling short of analysts' expectations by 1.2%. More broadly, it was an ok quarter for the company with a solid beat of analysts' earnings estimates.
The stock is down 1.3% since reporting and currently trades at $9.89.
This content was originally published on Stock Story
