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 satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.9% 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 $106.5 million, down 5.3% year on year. This print fell short of analysts’ expectations by 1.9%, but it was still a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We are pleased overall with the results of our first full year of our transformation plan, during which we made immediate and significant progress.” said Harold Bevis, President and Chief Executive Officer of NN,
NN scored the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 17.2% since reporting and currently trades at $2.24.
Is now the time to buy NN? Access our full analysis of the earnings results 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 an impressive beat of analysts’ EPS estimates.
ESCO delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.1% since reporting. It currently trades at $157.64.
Is now the time to buy ESCO? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 25.4% since the results and currently trades at $115.55.
Read our full analysis of Regal Rexnord’s results here.
Mayville Engineering (NYSE: MEC)
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Mayville Engineering reported revenues of $121.3 million, down 18.4% year on year. This print missed analysts’ expectations by 2.3%. It was a slower quarter as it also logged full-year EBITDA guidance missing analysts’ expectations.
Mayville Engineering had the slowest revenue growth among its peers. The stock is up 2.1% since reporting and currently trades at $14.06.
Read our full, actionable report on Mayville Engineering here, it’s free.
Park-Ohio (NASDAQ: PKOH)
Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.
Park-Ohio reported revenues of $388.4 million, flat year on year. This number came in 4.3% below analysts' expectations. Zooming out, it was actually a satisfactory quarter as it produced an impressive beat of analysts’ EBITDA estimates.
The stock is down 7.9% since reporting and currently trades at $21.28.
Read our full, actionable report on Park-Ohio here, it’s free.
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