Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Kennametal (NYSE:KMT) 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 along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.9% since the latest earnings results.
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $482.1 million, down 2.7% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
“This quarter we once again generated strong cash flow from operations,” said Sanjay Chowbey, President and CEO.
Kennametal Total Revenue
The stock is down 15.7% since reporting and currently trades at $19.76.
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, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling Total Revenue
Hyster-Yale Materials Handling pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 25.9% since reporting. It currently trades at $38.41.
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 $1.24 billion, down 3% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Snap-on delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.8% since the results and currently trades at $309.31.
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
ESAB reported revenues of $670.8 million, down 2.7% year on year. This print came in 0.8% below analysts’ expectations. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
The stock is down 4.1% since reporting and currently trades at $120.
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 number missed analysts’ expectations by 0.5%. 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 down 13.9% since reporting and currently trades at $68.75.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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