The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how internet of things stocks fared in Q2, starting with Vontier (NYSE: VNT).
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.
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 $773.5 million, up 11.1% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue and adjusted operating income estimates.
Vontier scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 5.1% since reporting and currently trades at $41.76.
Is now the time to buy Vontier? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $2.14 billion, up 4.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $344.
Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $38.31 million, down 21% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
SmartRent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 49% since the results and currently trades at $1.46.
Read our full analysis of SmartRent’s results here.
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 $875.7 million, flat year on year. This number topped analysts’ expectations by 4.9%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
Trimble achieved the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $82.10.
Read our full, actionable report on Trimble here, it’s free.
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 $1.78 billion, up 2.5% year on year. This result beat analysts’ expectations by 2.8%. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 5.4% since reporting and currently trades at $186.50.
Read our full, actionable report on AMETEK here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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