As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional tools and equipment industry, including Fortive (NYSE:FTV) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are 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 10 professional tools and equipment stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% 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 6.5% since the latest earnings results.
Fortive (NYSE:FTV)
Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.
Fortive reported revenues of $1.62 billion, up 2.3% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations.
James A. Lico, President and Chief Executive Officer, stated, “Our fourth quarter results once again demonstrated strong execution despite the mixed macro environment, leading to better-than-expected core growth, earnings, and free cash flow.”
Fortive delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 5.3% since reporting and currently trades at $75.59.
Read our full report on Fortive here, it’s free.
Best Q4: Hyster-Yale Materials Handling (NYSE:HY)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.07 billion, up 3.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.5% since reporting. It currently trades at $45.88.
Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Kennametal (NYSE:KMT)
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $482.1 million, down 2.7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 5.8% since the results and currently trades at $22.09.
Read our full analysis of Kennametal’s results here.
Nordson (NASDAQ:NDSN)
Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Nordson reported revenues of $615.4 million, down 2.8% year on year. This print came in 3.5% below analysts' expectations. It was a softer quarter as it also produced a significant miss of analysts’ organic revenue estimates and a miss of analysts’ EBITDA estimates.
Nordson had the weakest performance against analyst estimates among its peers. The stock is down 2.6% since reporting and currently trades at $211.81.
Read our full, actionable report on Nordson here, it’s free.
ESAB (NYSE:ESAB)
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
ESAB reported revenues of $670.8 million, down 2.7% year on year. This result lagged analysts' expectations by 0.8%. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance missing analysts’ expectations.
The stock is down 1.3% since reporting and currently trades at $123.51.
Read our full, actionable report on ESAB here, it’s free.
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