Q4 Earnings Highs And Lows: Middleby (NASDAQ:MIDD) Vs The Rest Of The Professional Tools and Equipment Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how professional tools and equipment stocks fared in Q4, starting with Middleby (NASDAQ:MIDD).
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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.4% since the latest earnings results.
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 $1.01 billion, flat year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
“We have continued to execute on our strategic initiatives focused on driving sustainable long-term organic growth, with recent launches of transformative product innovations and investments in differentiated go-to market capabilities. While we are currently facing challenging industry macro-conditions, we expect to see growth across all three of our foodservice segments as we progress through 2025. Our investments will continue to strengthen our leadership position across our businesses, positioning us very favorably as we anticipate moving into a multi-year recovery,” said Tim FitzGerald, CEO of the Middleby Corporation.
Middleby Total Revenue
The stock is down 21% since reporting and currently trades at $133.
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 $1.07 billion, up 3.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling Total Revenue
Hyster-Yale Materials Handling scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 27% since reporting. It currently trades at $37.85.
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $482.1 million, down 2.7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 18.8% since the results and currently trades at $19.04.
Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.02 billion, down 3.4% year on year. This print surpassed analysts’ expectations by 2.5%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Lincoln Electric had the slowest revenue growth among its peers. The stock is down 6.2% since reporting and currently trades at $182.14.
With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.
Stanley Black & Decker reported revenues of $3.72 billion, flat year on year. This result topped analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ organic revenue and EPS estimates.
The stock is down 31% since reporting and currently trades at $59.87.
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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