General Industrial Machinery Stocks Q3 In Review: L.B. Foster (NASDAQ:FSTR) Vs Peers

December 04, 2024 at 01:32 AM EST

FSTR Cover Image

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 general industrial machinery stocks fared in Q3, starting with L.B. Foster (NASDAQ: FSTR).

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 5.5% below.

Luckily, general industrial machinery stocks have performed well with share prices up 11.5% on average since the latest earnings results.

L.B. Foster (NASDAQ: FSTR)

Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

L.B. Foster reported revenues of $137.5 million, down 5.4% year on year. This print fell short of analysts’ expectations by 3.4%, but it was still a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

John Kasel, President and Chief Executive Officer, commented "As expected, we started the second half of the year with a strong quarter of profitability expansion and cash generation."

Interestingly, the stock is up 39.2% since reporting and currently trades at $29.45.

Is now the time to buy L.B. Foster? Access our full analysis of the earnings results here, it’s free.

Best Q3: Luxfer (NYSE: LXFR)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.

Luxfer reported revenues of $99.4 million, up 2.1% year on year, outperforming analysts’ expectations by 15.9%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Luxfer scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $14.44.

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

Weakest Q3: Icahn Enterprises (NASDAQ: IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.22 billion, down 25.7% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Icahn Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.1% since the results and currently trades at $11.07.

Read our full analysis of Icahn Enterprises’s results here.

Columbus McKinnon (NASDAQ: CMCO)

With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $242.3 million, down 6.2% year on year. This number came in 2.6% below analysts' expectations. It was a softer quarter as it also logged a miss of analysts’ organic revenue and EBITDA estimates.

The stock is up 22.1% since reporting and currently trades at $39.38.

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

General Electric (NYSE: GE)

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

General Electric reported revenues of $9.84 billion, up 5.8% year on year. This number beat analysts’ expectations by 4.9%. Aside from that, it was a mixed quarter as it also logged full-year EPS guidance slightly topping analysts’ expectations.

The stock is down 7.2% since reporting and currently trades at $180.37.

Read our full, actionable report on General Electric 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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