As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the general industrial machinery industry, including Crane (NYSE: CR) and its peers.
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 15 general industrial machinery stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Crane (NYSE: CR)
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Crane reported revenues of $577.2 million, up 9.2% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with full-year EPS guidance beating analysts’ expectations and a beat of analysts’ EPS estimates.
Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "My thanks and appreciation to the global Crane team for delivering another excellent quarter, with 24% adjusted EPS growth on 6.5% core sales growth resulting from our focus on exceeding our customers’ expectations with exceptional technology and service. Demand trends across our strategic growth platforms remained strong in the quarter, with 19.6% year-over-year core order growth and 18.2% year-over-year core backlog growth.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $190.98.
Is now the time to buy Crane? Access our full analysis of the earnings results here, it’s free.
Best Q2: Luxfer (NYSE: LXFR)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.
Luxfer reported revenues of $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 2% since reporting. It currently trades at $12.59.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
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’ EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 4.8% since the results and currently trades at $9.41.
Read our full analysis of Icahn Enterprises’s results here.
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 $10.15 billion, up 23.4% year on year. This number topped analysts’ expectations by 6.5%. It was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
GE Aerospace scored the biggest analyst estimates beat among its peers. The stock is up 1.7% since reporting and currently trades at $270.82.
Read our full, actionable report on GE Aerospace here, it’s free.
Honeywell (NASDAQ: HON)
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Honeywell reported revenues of $10.35 billion, up 8.1% year on year. This print beat analysts’ expectations by 2.8%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.
Honeywell pulled off the highest full-year guidance raise among its peers. The stock is down 9.2% since reporting and currently trades at $217.50.
Read our full, actionable report on Honeywell here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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