Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Hyster-Yale Materials Handling (NYSE:HY) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment 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 10 professional tools and equipment stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
Weakest Q3: Hyster-Yale Materials Handling (NYSE:HY)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.02 billion, up 1.5% year on year. This print fell short of analysts’ expectations by 3.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
The stock is down 13.5% since reporting and currently trades at $54.19.
Read our full report on Hyster-Yale Materials Handling here, it’s free.
Best Q3: ESAB (NYSE:ESAB)
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
ESAB reported revenues of $673.3 million, down 1.1% year on year, outperforming analysts’ expectations by 3.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.
ESAB scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.5% since reporting. It currently trades at $124.24.
Is now the time to buy ESAB? Access our full analysis of the earnings results here, it’s free.
Middleby (NASDAQ:MIDD)
Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.
Middleby reported revenues of $942.8 million, down 3.9% year on year, falling short of analysts’ expectations by 5.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Middleby delivered the weakest performance against analyst estimates in the group. The stock is up 22.3% since the results and currently trades at $171.66.
Read our full analysis of Middleby’s results here.
Fortive (NYSE:FTV)
Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.
Fortive reported revenues of $1.53 billion, up 2.7% year on year. This number missed analysts’ expectations by 1%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ organic revenue estimates.
The stock is up 9.4% since reporting and currently trades at $81.63.
Read our full, actionable report on Fortive here, it’s free.
Hillman (NASDAQ:HLMN)
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $393.3 million, down 1.4% year on year. This print topped analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 5.6% since reporting and currently trades at $10.13.
Read our full, actionable report on Hillman here, it’s free.
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