Yahoo Finance Winners And Losers Of Q2: Worthington (NYSE:WOR) Vs The Rest Of The Industrial Machinery Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at industrial machinery stocks, starting with Worthington (NYSE:WOR).
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 7 industrial machinery stocks we track reported an ok Q2; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 2.3% below consensus. 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 industrial machinery stocks have held roughly steady amidst all this, with share prices up 2.5% on average since the previous earnings results.
Weakest Q2: 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%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Building Products revenue estimates.
“We finished our fiscal year with a respectable fourth quarter delivering adjusted earnings per share of $0.74,” said Worthington Enterprises President and CEO Andy Rose.
Worthington delivered the weakest performance against analyst estimates of the whole group. The stock is up 1.3% since reporting and currently trades at $50.80.
Read our full report on Worthington here, it's free.
Best Q2: 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 $2.18 billion, up 3.7% year on year, outperforming analysts' expectations by 1.4%. It was a strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $185.23.
Is now the time to buy Dover? Access our full analysis of the earnings results 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 $3.60 billion, down 3.2% year on year, falling short of analysts' expectations by 3.4%. It was a weak quarter for the company with a miss of analysts' organic revenue estimates and full-year revenue guidance missing analysts' expectations.
As expected, the stock is down 6.5% since the results and currently trades at $92.05.
Read our full analysis of Otis's results here.
3M (NYSE:MMM)
Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
3M reported revenues of $6.02 billion, down 4.2% year on year, surpassing analysts' expectations by 3.3%. Taking a step back, it was a very strong quarter for the company with a solid beat of analysts' organic revenue estimates.
The stock is up 23.1% since reporting and currently trades at $127.28.
Read our full, actionable report on 3M here, it's free.
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 $1.55 billion, up 1.7% year on year, in line with analysts' expectations. More broadly, it was a weak quarter for the company with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' organic revenue estimates.
Fortive had the weakest full-year guidance update among its peers. The stock is down 5.9% since reporting and currently trades at $72.10.
Read our full, actionable report on Fortive here, it's free.
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