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 general industrial machinery stocks, starting with Luxfer (NYSE: LXFR).
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 2.9% 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.
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. This print exceeded analysts’ expectations by 5.9%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Interestingly, the stock is up 11.2% since reporting and currently trades at $13.72.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
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 $11.02 billion, up 34.1% year on year, outperforming analysts’ expectations by 15.6%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
GE Aerospace delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.4% since reporting. It currently trades at $302.15.
Is now the time to buy GE Aerospace? 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. As expected, the stock is down 6.6% since the results and currently trades at $8.39.
Read our full analysis of Icahn Enterprises’s results here.
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 $4.05 billion, flat year on year. This result beat analysts’ expectations by 0.9%. It was a strong quarter as it also logged full-year EPS guidance beating analysts’ expectations and a decent beat of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $259.92.
Read our full, actionable report on Illinois Tool Works here, it’s free.
John Bean (NYSE: JBTM)
Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.
John Bean reported revenues of $934.8 million, up 132% year on year. This number topped analysts’ expectations by 4.9%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
John Bean pulled off the fastest revenue growth among its peers. The stock is up 5.6% since reporting and currently trades at $141.12.
Read our full, actionable report on John Bean here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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