Looking back on general industrial machinery stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Icahn Enterprises (NASDAQ: IEP) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q2: Icahn Enterprises (NASDAQ: IEP)
Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.
Icahn Enterprises reported revenues of $2.32 billion, up 5.3% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 9.2% since reporting and currently trades at $8.15.
Read our full report on Icahn Enterprises here, it’s free for active Edge members.
Best Q2: Luxfer (NYSE: LXFR)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.
Luxfer reported revenues of $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 10.5% since reporting. It currently trades at $13.63.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free for active Edge members.
Otis (NYSE: OTIS)
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.
Otis reported revenues of $3.60 billion, flat year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ revenue estimates.
As expected, the stock is down 9.4% since the results and currently trades at $91.47.
Read our full analysis of Otis’s results here.
Dover (NYSE: DOV)
A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.
Dover reported revenues of $2.05 billion, up 5.2% year on year. This print beat analysts’ expectations by 0.6%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
The stock is down 15.2% since reporting and currently trades at $161.94.
Read our full, actionable report on Dover here, it’s free for active Edge members.
GE Aerospace (NYSE: GE)
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
GE Aerospace reported revenues of $10.15 billion, up 23.4% year on year. This result surpassed analysts’ expectations by 6.5%. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
GE Aerospace pulled off the biggest analyst estimates beat among its peers. The stock is up 12.7% since reporting and currently trades at $300.31.
Read our full, actionable report on GE Aerospace here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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