Let’s dig into the relative performance of SiteOne (NYSE: SITE) and its peers as we unravel the now-completed Q4 specialty equipment distributors earnings season.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 8 specialty equipment distributors stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.
SiteOne (NYSE: SITE)
Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.
SiteOne reported revenues of $1.01 billion, up 5% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
“We were pleased to finish a challenging year in 2024 on a more positive note, achieving 1% Organic Daily Sales growth in the fourth quarter against the headwind of 3% deflation. Throughout the year, we made significant progress on our strategic initiatives and acquisition integrations, which positions us well for positive sales growth, SG&A leverage, and EBITDA margin expansion in 2025,” said Doug Black, SiteOne’s Chairman and CEO.
The stock is down 7.2% since reporting and currently trades at $123.76.
Is now the time to buy SiteOne? Access our full analysis of the earnings results here, it’s free.
Best Q4: United Rentals (NYSE: URI)
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
United Rentals reported revenues of $4.10 billion, up 9.8% year on year, outperforming analysts’ expectations by 3.9%. The business had a strong quarter with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.
United Rentals scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 18% since reporting. It currently trades at $621.33.
Is now the time to buy United Rentals? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Richardson Electronics (NASDAQ: RELL)
Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $49.49 million, up 12.1% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 15.4% since the results and currently trades at $12.44.
Read our full analysis of Richardson Electronics’s results here.
Hudson Technologies (NASDAQ: HDSN)
Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $34.64 million, down 22.8% year on year. This number missed analysts’ expectations by 8.7%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ EPS estimates.
Hudson Technologies had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 7.7% since reporting and currently trades at $6.03.
Read our full, actionable report on Hudson Technologies here, it’s free.
Herc (NYSE: HRI)
Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.
Herc reported revenues of $951 million, up 14.4% year on year. This print beat analysts’ expectations by 2.5%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
Herc delivered the fastest revenue growth among its peers. The stock is down 38% since reporting and currently trades at $128.82.
Read our full, actionable report on Herc here, it’s free.
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