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 Rockwell Automation (NYSE: ROK) and the best and worst performers in the internet of things industry.
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 6 internet of things stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, internet of things stocks have performed well with share prices up 10.6% on average since the latest earnings results.
Best Q1: 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 $2.00 billion, down 5.9% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.
"Rockwell delivered another quarter of strong operating performance with sales, margins, and EPS all above our expectations. We saw a healthy intake of orders across most of our lines of business, with total company book-to-bill in-line with our historical average of about 1.0. We also continue to add resiliency to our operations as we navigate a highly dynamic environment. I’m proud of how our employees and partners are working together to position Rockwell as the automation leader of choice for our customers in the U.S. and around the world," said Blake Moret, Chairman and CEO.
Interestingly, the stock is up 24.6% since reporting and currently trades at $314.93.
Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free.
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 $741.1 million, down 1.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a strong quarter with a solid beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $36.09.
Is now the time to buy Vontier? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $41.34 million, down 18.1% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
SmartRent delivered the slowest revenue growth in the group. As expected, the stock is down 5.7% since the results and currently trades at $0.85.
Read our full analysis of SmartRent’s results here.
AMETEK (NYSE: AME)
Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
AMETEK reported revenues of $1.73 billion, flat year on year. This result missed analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ organic revenue estimates.
AMETEK had the weakest performance against analyst estimates among its peers. The stock is up 6.4% since reporting and currently trades at $180.04.
Read our full, actionable report on AMETEK here, it’s free.
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 $840.6 million, down 11.8% year on year. This number topped analysts’ expectations by 3.8%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
Trimble scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 13.1% since reporting and currently trades at $71.64.
Read our full, actionable report on Trimble here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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