Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at FTAI Aviation (NASDAQ: FTAI) and the best and worst performers in the industrial distributors industry.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 24 industrial distributors stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% 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 5% since the latest earnings results.
FTAI Aviation (NASDAQ: FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
FTAI Aviation reported revenues of $667.1 million, up 43.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
“Our business had a strong quarter underpinned by continued growth in Aerospace Products allowing us to increase guidance for 2026 and raise our ordinary dividend,” said Joe Adams, Chairman and CEO.
FTAI Aviation scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 7.7% since reporting and currently trades at $199.30.
Best Q3: Richardson Electronics (NASDAQ: RELL)
Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $54.61 million, up 1.6% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Richardson Electronics achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.3% since reporting. It currently trades at $10.85.
Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Alta (NYSE: ALTG)
Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Alta reported revenues of $422.6 million, down 5.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.
Alta delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.3% since the results and currently trades at $4.50.
Read our full analysis of Alta’s results here.
GATX (NYSE: GATX)
Originally founded to ship beer, GATX (NYSE: GATX) provides leasing and management services for railcars and other transportation assets globally.
GATX reported revenues of $439.3 million, up 8.4% year on year. This print topped analysts’ expectations by 0.8%. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
The stock is down 1.9% since reporting and currently trades at $169.60.
Read our full, actionable report on GATX here, it’s free for active Edge members.
VSE Corporation (NASDAQ: VSEC)
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
VSE Corporation reported revenues of $282.9 million, up 3.4% year on year. This number beat analysts’ expectations by 2.3%. It was a stunning quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 3.8% since reporting and currently trades at $172.77.
Read our full, actionable report on VSE Corporation here, it’s free for active Edge members.
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