Spotting Winners: Icahn Enterprises (NASDAQ:IEP) And General Industrial Machinery Stocks In Q3
Let’s dig into the relative performance of Icahn Enterprises (NASDAQ:IEP) and its peers as we unravel the now-completed Q3 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 mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.5% below.
In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.
Weakest Q3: 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 $2.22 billion, down 25.7% year on year. This print fell short of analysts’ expectations by 4.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
Icahn Enterprises Total Revenue
Icahn Enterprises delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 32.4% since reporting and currently trades at $8.71.
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.
Luxfer reported revenues of $99.4 million, up 2.1% year on year, outperforming analysts’ expectations by 15.9%. The business had an incredible quarter with an impressive beat of analysts’ EPS and EBITDA estimates.
Luxfer Total Revenue
Luxfer achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $13.09.
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 $242.3 million, down 6.2% year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ organic revenue and EBITDA estimates.
Interestingly, the stock is up 15.5% since the results and currently trades at $37.24.
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 $298.4 million, up 6.1% year on year. This result met analysts’ expectations. More broadly, it was a slower quarter as it logged full-year EBITDA guidance missing analysts’ expectations.
The stock is up 13.1% since reporting and currently trades at $79.97.
Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation.
John Bean reported revenues of $453.8 million, up 12.4% year on year. This print surpassed analysts’ expectations by 2.6%. Aside from that, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates.
John Bean scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 33.4% since reporting and currently trades at $127.
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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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