Yahoo Finance Q1 Earnings Roundup: Enpro (NYSE:NPO) And The Rest Of The Engineered Components and Systems Segment
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the engineered components and systems industry, including Enpro (NYSE:NPO) 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 11 engineered components and systems stocks we track reported a slower Q1; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and engineered components and systems stocks have held roughly steady amidst all this, with share prices up 0.1% on average since the previous earnings results.
Weakest Q1: 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 $257.5 million, down 8.9% year on year, falling short of analysts' expectations by 4.2%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
“We began the year with strong profitability in Sealing Technologies, and, as expected, continued softness in Advanced Surface Technologies resulting from semiconductor market conditions,” said Eric Vaillancourt, President and Chief Executive Officer.
The stock is flat since reporting and currently trades at $153.17.
Read our full report on Enpro here, it's free.
Best Q1: 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 $49.07 million, up 14% year on year, outperforming analysts' expectations by 10.3%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Graham Corporation achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $28.19.
Is now the time to buy Graham Corporation? Access our full analysis of the earnings results here, it's free.
Worthington (NYSE:WOR)
Founded by a steel salesman, Worthington Enterprises (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Worthington reported revenues of $318.8 million, down 13.6% year on year, falling short of analysts' expectations by 9.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Worthington posted the weakest performance against analyst estimates in the group. As expected, the stock is down 7.3% since the results and currently trades at $46.48.
Read our full analysis of Worthington's results here.
Arrow Electronics (NYSE:ARW)
Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.
Arrow Electronics reported revenues of $6.92 billion, down 20.7% year on year, falling short of analysts' expectations by 1.7%. Taking a step back, it was a weak quarter for the company with a miss of analysts' Components revenue estimates.
Arrow Electronics had the slowest revenue growth among its peers. The stock is down 2.3% since reporting and currently trades at $122.03.
Read our full, actionable report on Arrow Electronics here, it's free.
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 $161.3 million, up 13.1% year on year, in line with analysts' expectations. Zooming out, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming EBITDA guidance for the full year.
The stock is up 26.8% since reporting and currently trades at $17.35.
Read our full, actionable report on Mayville Engineering here, it's free.
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