The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how general industrial machinery stocks fared in Q4, starting with Hillenbrand (NYSE:HI).
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 10.3% since the latest earnings results.
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 print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations and EPS guidance for next quarter missing analysts’ expectations.
"The agreement to divest a majority stake in the Milacron business reflects the continuation of Hillenbrand's transformation as we've significantly reshaped our portfolio toward less cyclical, higher-growth opportunities. Over the last few years, we have exited our secularly declining death care segment and pursued several strategic acquisitions, building scale in the attractive food, health, and nutrition end markets, which now comprise just under 30% of our total revenue mix on a pro forma basis. We believe this transaction not only delivers value for Hillenbrand and our shareholders, but also Milacron and its customers, as they have a strong partner in Bain Capital to help drive their next phase of growth," said Kim Ryan, President and Chief Executive Officer of Hillenbrand.
Hillenbrand delivered the weakest full-year guidance update of the whole group. The stock is down 26.7% since reporting and currently trades at $24.87.
Read our full report on Hillenbrand 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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
GE Aerospace scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $193.70.
Is now the time to buy GE Aerospace? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $234.1 million, down 7.9% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Columbus McKinnon delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 50.7% since the results and currently trades at $17.48.
Read our full analysis of Columbus McKinnon’s results here.
Dover (NYSE:DOV)
A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.
Dover reported revenues of $1.93 billion, up 1.3% year on year. This number came in 1.1% below analysts' expectations. It was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
The stock is down 9.7% since reporting and currently trades at $178.10.
Read our full, actionable report on Dover here, it’s free.
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 result lagged analysts' expectations by 1.4%. Overall, it was a slower quarter as it also logged full-year EPS guidance missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.
The stock is down 1.5% since reporting and currently trades at $250.71.
Read our full, actionable report on Illinois Tool Works here, it’s free.
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