Q4 Earnings Outperformers: Icahn Enterprises (NASDAQ:IEP) And The Rest Of The General Industrial Machinery Stocks
Let’s dig into the relative performance of Icahn Enterprises (NASDAQ:IEP) and its peers as we unravel the now-completed Q4 general industrial machinery earnings season.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 2.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.5% since the latest earnings results.
Icahn Enterprises (NASDAQ:IEP)
Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.
Icahn Enterprises reported revenues of $2.56 billion, down 3.9% year on year. This print exceeded analysts’ expectations by 12.5%. Despite the top-line beat, it was still a mixed quarter for the company.
Icahn Enterprises Total Revenue
The stock is down 15.5% since reporting and currently trades at $8.68.
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
GE Aerospace reported revenues of $10.81 billion, up 14.3% year on year, outperforming analysts’ expectations by 13.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
GE Aerospace Total Revenue
GE Aerospace delivered the fastest revenue growth among its peers. The stock is down 3.5% since reporting. It currently trades at $181.82.
With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Columbus McKinnon reported revenues of $234.1 million, down 7.9% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Columbus McKinnon delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 63% since the results and currently trades at $13.13.
Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Albany reported revenues of $286.9 million, down 11.3% year on year. This number came in 4.2% below analysts' expectations. It was a disappointing quarter as it also recorded full-year revenue guidance missing analysts’ expectations.
Albany had the slowest revenue growth among its peers. The stock is down 19.5% since reporting and currently trades at $63.42.
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 $6.01 billion, flat year on year. This result beat analysts’ expectations by 4.5%. Zooming out, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates.
The stock is down 7.3% since reporting and currently trades at $130.70.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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