Unpacking Q4 Earnings: SmartRent (NYSE:SMRT) In The Context Of Other Internet of Things 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 Q4. Today, we are looking at internet of things stocks, starting with SmartRent (NYSE:SMRT).
Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.
The 6 internet of things stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 23.3% since the latest earnings results.
Weakest Q4: SmartRent (NYSE:SMRT)
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $35.37 million, down 41.3% year on year. This print fell short of analysts’ expectations by 10.2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
SmartRent Total Revenue
SmartRent delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 42.9% since reporting and currently trades at $0.72.
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Rockwell Automation reported revenues of $1.88 billion, down 8.3% year on year, falling short of analysts’ expectations by 0.6%. However, the business still had a strong quarter with a solid beat of analysts’ EBITDA estimates.
Rockwell Automation Total Revenue
The stock is down 13.1% since reporting. It currently trades at $232.92.
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
AMETEK reported revenues of $1.76 billion, up 1.8% year on year, falling short of analysts’ expectations by 3.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue estimates and full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 13.8% since the results and currently trades at $158.81.
A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Vontier reported revenues of $776.8 million, down 1.5% year on year. This result surpassed analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
Vontier had the weakest full-year guidance update among its peers. The stock is down 25.7% since reporting and currently trades at $28.01.
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Trimble reported revenues of $983.4 million, up 5.5% year on year. This print beat analysts’ expectations by 4.2%. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.
Trimble pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 22.1% since reporting and currently trades at $58.51.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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