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 Regal Rexnord (NYSE: RRX) and the rest of the engineered components and systems stocks fared in Q4.
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 satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.
While some engineered components and systems stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results.
Weakest Q4: Regal Rexnord (NYSE: RRX)
Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.
Regal Rexnord reported revenues of $1.46 billion, down 9.1% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
The stock is down 21.9% since reporting and currently trades at $121.01.
Read our full report on Regal Rexnord here, it’s free.
Best Q4: ESCO (NYSE: ESE)
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
ESCO reported revenues of $247 million, up 13.2% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
ESCO achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 20.8% since reporting. It currently trades at $159.77.
Is now the time to buy ESCO? Access our full analysis of the earnings results here, it’s free.
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 $106.5 million, down 5.3% year on year, falling short of analysts’ expectations by 1.9%. Still, its results were good as it locked in an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
As expected, the stock is down 1.5% since the results and currently trades at $2.67.
Read our full analysis of NN’s results here.
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 $1.07 billion, flat year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 8.5% since reporting and currently trades at $230.23.
Read our full, actionable report on Applied Industrial here, it’s free.
RBC Bearings (NYSE: RBC)
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
RBC Bearings reported revenues of $394.4 million, up 5.5% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
The stock is up 9.1% since reporting and currently trades at $351.43.
Read our full, actionable report on RBC Bearings here, it’s free.
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