Let's dig into the relative performance of Xometry (NASDAQ:XMTR) and its peers as we unravel the now-completed Q1 specialty equipment distributors earnings season.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 11 specialty equipment distributors stocks we track reported a mixed Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and specialty equipment distributors stocks have held roughly steady amidst all this, with share prices up 0.5% on average since the previous earnings results.
Xometry (NASDAQ:XMTR) Calling itself the "Uber of Manufacturing", Xometry (NASDAQ:XMTR) is an online marketplace connecting manufacturers with customers who need custom parts and products.
Xometry reported revenues of $122.7 million, up 16.5% year on year, exceeding analysts' expectations by 2.4%. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
“Powered by AI, our marketplace continues to gain significant market share as buyers and suppliers realize the value, convenience and resiliency of our platform,” said Randy Altschuler, Xometry’s CEO.
Xometry scored the fastest revenue growth of the whole group. The company added 3,179,000,000 customers to reach a total of 58.5 billion. The stock is flat since reporting and currently trades at $15.39.
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Best Q1: Hudson Technologies (NASDAQ:HDSN) Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $65.25 million, down 15.5% year on year, outperforming analysts' expectations by 7.5%. It was an exceptional quarter for the company with a solid beat of analysts' earnings estimates.
Hudson Technologies achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 11% since reporting. It currently trades at $8.70.
Weakest Q1: Titan Machinery (NASDAQ:TITN) Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.
Titan Machinery reported revenues of $628.7 million, up 10.4% year on year, falling short of analysts' expectations by 5%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 28.2% since the results and currently trades at $16.62.
Custom Truck One Source (NYSE:CTOS) Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of truck and heavy equipment, including sales, rentals, and custom modifications.
Custom Truck One Source reported revenues of $411.3 million, down 9% year on year, falling short of analysts' expectations by 9.8%. Taking a step back, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Custom Truck One Source had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 9% since reporting and currently trades at $4.46.
Herc (NYSE:HRI) Formerly a subsidiary of Hertz (NASDAQ:HTZ) Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.
Herc reported revenues of $804 million, up 8.6% year on year, surpassing analysts' expectations by 2.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' revenue and earnings estimates.
The stock is up 3.3% since reporting and currently trades at $153.31.
This content was originally published on Stock Story
