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 Q2. Today, we are looking at industrial machinery stocks, starting with 3D Systems (NYSE: DDD).
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 58 industrial machinery stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.9% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
3D Systems (NYSE: DDD)
Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.
3D Systems reported revenues of $94.84 million, down 16.3% year on year. This print fell short of analysts’ expectations by 1%, but it was still an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Dr. Jeffrey Graves, president and CEO of 3D Systems said, “We delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry.”
Interestingly, the stock is up 65.7% since reporting and currently trades at $2.90.
Is now the time to buy 3D Systems? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Energy Recovery (NASDAQ: ERII)
Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ: ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.
Energy Recovery reported revenues of $28.05 million, up 3.1% year on year, outperforming analysts’ expectations by 10.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Energy Recovery pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $15.
Is now the time to buy Energy Recovery? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.
As expected, the stock is down 9.7% since the results and currently trades at $8.11.
Read our full analysis of Icahn Enterprises’s results here.
Columbus McKinnon (NASDAQ: CMCO)
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 $235.9 million, down 1.6% year on year. This number beat analysts’ expectations by 2.2%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue and EPS estimates.
The stock is down 13% since reporting and currently trades at $14.64.
Read our full, actionable report on Columbus McKinnon here, it’s free for active Edge members.
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 $977.9 million, down 1.4% year on year. This print surpassed analysts’ expectations by 0.6%. However, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations and EBITDA guidance for next quarter missing analysts’ expectations significantly.
The stock is down 11.8% since reporting and currently trades at $127.75.
Read our full, actionable report on Middleby here, it’s free for active Edge members.
Market Update
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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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