The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Illinois Tool Works (NYSE: ITW) and the rest of the general industrial machinery stocks fared in Q4.
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 14 general industrial machinery stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 2.6% 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 7.7% since the latest earnings results.
Illinois Tool Works (NYSE: ITW)
Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE: ITW) manufactures engineered components and specialized equipment for numerous industries.
Illinois Tool Works reported revenues of $3.93 billion, down 1.3% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.
“ITW delivered a solid finish to the year as we outperformed underlying end markets, expanded operating margin by 140 basis points, generated record free cash flow, and delivered seven percent earnings per share growth in the fourth quarter,” said Christopher A. O’Herlihy, President and Chief Executive Officer.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $255.99.
Read our full report on Illinois Tool Works here, it’s free.
Best Q4: GE Aerospace (NYSE: GE)
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 achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $209.21.
Is now the time to buy GE Aerospace? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Albany (NYSE: AIN)
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, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Albany delivered the slowest revenue growth in the group. As expected, the stock is down 8.7% since the results and currently trades at $72.01.
Read our full analysis of Albany’s results here.
Hillenbrand (NYSE: HI)
Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.
Hillenbrand reported revenues of $706.9 million, down 8.6% year on year. This number beat analysts’ expectations by 1.6%. Aside from that, it was a softer quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
Hillenbrand had the weakest full-year guidance update among its peers. The stock is down 23.3% since reporting and currently trades at $26.02.
Read our full, actionable report on Hillenbrand here, it’s free.
Otis (NYSE: OTIS)
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.
Otis reported revenues of $3.68 billion, up 1.5% year on year. This result topped analysts’ expectations by 1%. More broadly, it was a slower quarter as it produced a miss of analysts’ adjusted operating income estimates.
Otis delivered the highest full-year guidance raise among its peers. The stock is up 6.1% since reporting and currently trades at $101.68.
Read our full, actionable report on Otis here, it’s free.
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