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General Industrial Machinery Stocks Q3 Teardown: Hillenbrand (NYSE:HI) Vs The Rest

By: StockStory

December 30, 2024 at 04:01 AM EST

HI Cover Image

Looking back on general industrial machinery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Hillenbrand (NYSE: HI) and its peers.

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 were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.5% below.

In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.

Hillenbrand (NYSE: HI)

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $837.6 million, up 9.8% year on year. This print exceeded analysts’ expectations by 5.6%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

"As we've completed our first full year as a pure-play global industrial company, we remain confident in the capabilities of our leading brands and differentiated technologies to deliver world-class solutions for our customers," said Kim Ryan, President and Chief Executive Officer of Hillenbrand.

Hillenbrand delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.5% since reporting and currently trades at $30.63.

Read our full report on Hillenbrand 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 a solid beat of analysts’ EPS and EBITDA estimates.

Luxfer delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $13.09.

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 slowest revenue growth in the group. As expected, the stock is down 30.6% since the results and currently trades at $8.94.

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

Dover (NYSE: DOV)

A company who manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.

Dover reported revenues of $1.98 billion, up 1.3% year on year. This result came in 1% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ organic revenue and EBITDA estimates.

The stock is down 1.3% since reporting and currently trades at $189.10.

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

Otis (NYSE: OTIS)

Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.

Otis reported revenues of $3.55 billion, flat year on year. This number missed analysts’ expectations by 0.7%. It was a slower quarter as it also logged a miss of analysts’ adjusted operating income estimates.

The stock is down 7.7% since reporting and currently trades at $93.52.

Read our full, actionable report on Otis 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 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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