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 Q1. Today, we are looking at professional tools and equipment stocks, starting with Hyster-Yale Materials Handling (NYSE:HY).
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 9 professional tools and equipment stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.8%.
In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results.
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 $910.4 million, down 13.8% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a disappointing quarter for the company with a miss of analysts’ EBITDA and EPS estimates.
Hyster-Yale Materials Handling Total Revenue
Hyster-Yale Materials Handling delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $40.57.
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 $678.1 million, down 1.7% year on year, outperforming analysts’ expectations by 2.2%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
ESAB Total Revenue
The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $125.56.
Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Snap-on reported revenues of $1.24 billion, down 3% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Snap-on delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3% since the results and currently trades at $322.12.
Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.00 billion, up 2.4% year on year. This number topped analysts’ expectations by 2.9%. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts’ organic revenue estimates but a miss of analysts’ EPS estimates.
Lincoln Electric achieved the biggest analyst estimates beat among its peers. The stock is up 5.7% since reporting and currently trades at $194.37.
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 $359.3 million, up 2.6% year on year. This result missed analysts’ expectations by 0.5%. In spite of that, it was a strong quarter as it logged a solid beat of analysts’ adjusted operating income estimates.
Hillman delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $7.51.
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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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