Looking back on engineered components and systems stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Graham Corporation (NYSE: GHM) and its peers.

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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.9% below.

In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.

Best Q3: Graham Corporation (NYSE: GHM)

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE: GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Graham Corporation reported revenues of $53.56 million, up 18.8% year on year. This print exceeded analysts’ expectations by 7.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS and EBITDA estimates.

“Our team’s efforts to diversify and strengthen the business over the past few years are clearly yielding results, as shown by our record second-quarter performance,” commented Daniel J. Thoren, President and Chief Executive Officer.

Graham Corporation pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 25% since reporting and currently trades at $41.56.

We think Graham Corporation is a good business, but is it a buy today? Read our full report 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 $417.6 million, flat year on year, falling short of analysts’ expectations by 4.8%. However, the business still had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.6% since reporting. It currently trades at $30.45.

Is now the time to buy Park-Ohio? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 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 $135.4 million, down 14.4% year on year, falling short of analysts’ expectations by 14.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Mayville Engineering delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 23.4% since the results and currently trades at $16.66.

Read our full analysis of Mayville Engineering’s results here.

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 $298.5 million, up 9.5% year on year. This number topped analysts’ expectations by 5.6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.

The stock is up 5.2% since reporting and currently trades at $146.99.

Read our full, actionable report on ESCO 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 $113.6 million, down 8.7% year on year. This print lagged analysts' expectations by 5.7%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 3.7% since reporting and currently trades at $3.79.

Read our full, actionable report on NN here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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