The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Terex (NYSE:TEX) and the rest of the heavy machinery stocks fared in Q1.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 19 heavy machinery stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.9%. while next quarter's revenue guidance was 11.6% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and heavy machinery stocks have held roughly steady amidst all this, with share prices up 2.7% on average since the previous earnings results.
Terex (NYSE:TEX) With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.29 billion, up 4.6% year on year, exceeding analysts' expectations by 5%. Overall, it was a stunning quarter for the company with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' earnings estimates.
"Terex delivered excellent first quarter results, achieving sales growth and margin expansion versus the prior year," said Simon Meester, Terex President and Chief Executive Officer.
The stock is down 1.1% since reporting and currently trades at $59.19.
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Best Q1: Blue Bird (NASDAQ:BLBD) With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $345.9 million, up 15.4% year on year, outperforming analysts' expectations by 15.9%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Blue Bird scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 36.2% since reporting. It currently trades at $51.15.
Weakest Q1: Titan International (NYSE:TWI) Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Titan International reported revenues of $482.2 million, down 12.1% year on year, falling short of analysts' expectations by 10.3%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' earnings estimates.
As expected, the stock is down 24.6% since the results and currently trades at $8.42.
Caterpillar (NYSE:CAT) With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $15.8 billion, flat year on year, falling short of analysts' expectations by 1.2%. Overall, it was a slower quarter for the company with a miss of analysts' organic revenue estimates.
The stock is down 2.2% since reporting and currently trades at $355.53.
Wabtec (NYSE:WAB) Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.
Wabtec reported revenues of $2.50 billion, up 13.8% year on year, surpassing analysts' expectations by 4.4%. More broadly, it was a stunning quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.
Wabtec delivered the highest full-year guidance raise among its peers. The stock is up 12.4% since reporting and currently trades at $166.90.
This content was originally published on Stock Story
