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 NN (NASDAQ:NNBR) and the best and worst performers in the engineered components and systems industry.

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 13 engineered components and systems stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.9% below.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

NN (NASDAQ:NNBR)

Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

NN reported revenues of $113.6 million, down 8.7% year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

“We achieved a faster pace in our enterprise transformation across cost-out and growth programs within our current capital structure,” said Harold Bevis, President and Chief Executive Officer of NN,

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $3.91.

Read our full report on NN here, it’s free.

Best Q3: Graham Corporation (NYSE:GHM)

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Graham Corporation reported revenues of $53.56 million, up 18.8% year on year, outperforming analysts’ expectations by 7.8%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Graham Corporation delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 29.9% since reporting. It currently trades at $43.20.

Is now the time to buy Graham Corporation? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Worthington (NYSE:WOR)

Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Worthington reported revenues of $257.3 million, down 17.5% year on year, falling short of analysts’ expectations by 13.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Worthington delivered the slowest revenue growth in the group. As expected, the stock is down 12.1% since the results and currently trades at $39.79.

Read our full analysis of Worthington’s results here.

Arrow Electronics (NYSE:ARW)

Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.

Arrow Electronics reported revenues of $6.82 billion, down 14.8% year on year. This number beat analysts’ expectations by 1.4%. More broadly, it was a slower quarter as it logged a significant miss of analysts’ adjusted operating income estimates and EPS guidance for next quarter missing analysts’ expectations.

The stock is down 12.4% since reporting and currently trades at $119.11.

Read our full, actionable report on Arrow Electronics here, it’s free.

Applied Industrial (NYSE:AIT)

Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.

Applied Industrial reported revenues of $1.10 billion, flat year on year. This print surpassed analysts’ expectations by 1.5%. Zooming out, it was a mixed quarter as it also produced a narrow beat of analysts’ organic revenue estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 24.2% since reporting and currently trades at $278.

Read our full, actionable report on Applied Industrial 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 has 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.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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