Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Honeywell (NASDAQ: HON) and the best and worst performers in the general industrial machinery industry.
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 mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.5% below.
Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.
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 $9.82 billion, up 7.9% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
"Honeywell started the year off exceptionally well, exceeding guidance across all metrics, led by solid organic growth," said Vimal Kapur, chairman and chief executive officer of Honeywell.
Interestingly, the stock is up 10.8% since reporting and currently trades at $222.20.
Is now the time to buy Honeywell? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $97 million, up 8.5% year on year, outperforming analysts’ expectations by 11.9%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Luxfer achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.4% since reporting. It currently trades at $11.63.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.87 billion, down 24.6% year on year, falling short of analysts’ expectations by 29%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 1.9% since the results and currently trades at $8.56.
Read our full analysis of Icahn Enterprises’s results here.
3M (NYSE: MMM)
Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
3M reported revenues of $5.78 billion, down 3.9% year on year. This number beat analysts’ expectations by 1.5%. It was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 18.6% since reporting and currently trades at $149.40.
Read our full, actionable report on 3M here, it’s free.
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 $557.6 million, up 9.3% year on year. This print surpassed analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is up 14.9% since reporting and currently trades at $170.64.
Read our full, actionable report on Crane 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.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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