Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Luxfer (NYSE:LXFR) 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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 9.2% while next quarter’s revenue guidance was 4% below.
After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.
In light of this news, general industrial machinery stocks have held steady with share prices up 2.3% on average since the latest earnings results.
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 $89.4 million, down 11.7% year on year. This print exceeded analysts’ expectations by 7.8%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
Interestingly, the stock is up 34.9% since reporting and currently trades at $12.99.
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3M (NYSE:MMM)
Producers of the first asthma inhaler, 3M Company (NYSE:) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
3M reported revenues of $6.02 billion, down 24.7% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 31.2% since reporting. It currently trades at $135.63.
Weakest Q1: John Bean (NYSE:JBT)
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 $402.3 million, down 5.9% year on year, falling short of analysts’ expectations by 7%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.
John Bean delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.6% since the results and currently trades at $99.07.
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 $786.6 million, up 9.8% year on year. This print missed analysts’ expectations by 3.9%. Overall, it was a slower quarter as it also logged a miss of analysts’ earnings estimates and underwhelming EBITDA guidance for the full year.
The stock is down 30.1% since reporting and currently trades at $26.58.
L.B. Foster (NASDAQ:FSTR)
Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
L.B. Foster reported revenues of $140.8 million, down 4.9% year on year. This number surpassed analysts’ expectations by 2.5%. Overall, it was a strong quarter as it also put up full-year revenue guidance exceeding analysts’ expectations.
The stock is down 2.9% since reporting and currently trades at $20.13.
This content was originally published on Stock Story
