Looking back on internet of things stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including SmartRent (NYSE:SMRT) 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 weak Q2. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 3.4% below.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some internet of things stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.
SmartRent (NYSE:SMRT) Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $48.52 million, down 9.1% 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.
"Our team is taking comprehensive steps to address the increasing market headwinds and enhance both our financial stability and overall execution discipline," stated Daryl Stemm, CFO and interim Principal Executive Officer.
Unsurprisingly, the stock is down 10.8% since reporting and currently trades at $1.48.
Is now the time to buy SmartRent? Find out by reading the original article on StockStory, it’s free.
Best Q2: Trimble (NASDAQ:TRMB) Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Trimble reported revenues of $870.8 million, down 12.4% year on year, in line with analysts’ expectations. It performed better than its peers, but it was unfortunately a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.
Trimble scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $54.04.
Weakest Q2: Vontier (NYSE:VNT) A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Vontier reported revenues of $696.4 million, down 8.9% year on year, falling short of analysts’ expectations by 6.7%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
Vontier posted the weakest performance against analyst estimates in the group. As expected, the stock is down 13.9% since the results and currently trades at $33.80.
Rockwell Automation (NYSE:ROK) One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Rockwell Automation reported revenues of $2.05 billion, down 8.4% year on year, in line with analysts’ expectations. Revenue aside, it was a mixed quarter for the company with a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.
The stock is up 4.2% since reporting and currently trades at $261.17.
Emerson Electric (NYSE:NYSE:EMR) Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Emerson Electric reported revenues of $4.38 billion, up 11% year on year, falling short of analysts’ expectations by 1.3%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Emerson Electric delivered the fastest revenue growth among its peers. The stock is down 4% since reporting and currently trades at $103.49.
This content was originally published on Stock Story
