Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Hyster-Yale Materials Handling (NYSE:HY) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are 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 10 professional tools and equipment stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.
Best Q4: Hyster-Yale Materials Handling (NYSE:HY)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.07 billion, up 3.9% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 3.8% since reporting and currently trades at $53.79.
Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it’s free.
Lincoln Electric (NASDAQ:LECO)
Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.02 billion, down 3.4% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $205.28.
Is now the time to buy Lincoln Electric? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Middleby (NASDAQ:MIDD)
Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.
Middleby reported revenues of $1.01 billion, flat year on year, exceeding analysts’ expectations by 1.6%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EBITDA estimates.
The stock is flat since the results and currently trades at $166.74.
Read our full analysis of Middleby’s results here.
Snap-on (NYSE:SNA)
Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Snap-on reported revenues of $1.30 billion, flat year on year. This number met analysts’ expectations. However, it was a slower quarter as it logged a miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA estimates.
The stock is down 4.9% since reporting and currently trades at $339.49.
Read our full, actionable report on Snap-on here, it’s free.
Fortive (NYSE:FTV)
Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.
Fortive reported revenues of $1.62 billion, up 2.3% year on year. This result missed analysts’ expectations by 0.5%. Overall, it was a slower quarter as it also logged EPS guidance for next quarter missing analysts’ expectations.
Fortive had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $79.28.
Read our full, actionable report on Fortive here, it’s free.
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