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 Enpro (NYSE: NPO) 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.9% below.

While some engineered components and systems stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

Enpro (NYSE: NPO)

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Enpro reported revenues of $260.9 million, up 4.1% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

“Third quarter performance was resilient despite continued soft conditions in several of our larger end-markets,” said Eric Vaillancourt, President and Chief Executive Officer.

Interestingly, the stock is up 16.3% since reporting and currently trades at $170.35.

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

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, outperforming analysts’ expectations by 7.8%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Graham Corporation scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 32.7% since reporting. It currently trades at $44.14.

Is now the time to buy Graham Corporation? 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 with 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 28.6% since the results and currently trades at $15.54.

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

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. This number lagged analysts' expectations by 4.8%. Aside from that, it was a strong quarter as it produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

The stock is down 24.4% since reporting and currently trades at $25.17.

Read our full, actionable report on Park-Ohio here, it’s free.

Gates Industrial Corporation (NYSE: GTES)

Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE: GTES) offers power transmission and fluid transfer equipment for various industries.

Gates Industrial Corporation reported revenues of $830.7 million, down 4.8% year on year. This result was in line with analysts’ expectations. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but organic revenue in line with analysts’ estimates.

The stock is up 11.8% since reporting and currently trades at $20.42.

Read our full, actionable report on Gates Industrial Corporation here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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

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