Looking back on general industrial machinery stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Albany (NYSE: AIN) 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 mixed Q1. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1.5% below.
Luckily, general industrial machinery stocks have performed well with share prices up 13.6% on average since the latest earnings results.
Albany (NYSE: AIN)
Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Albany reported revenues of $288.8 million, down 7.8% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and full-year revenue guidance slightly missing analysts’ expectations.
"Overall, I am pleased to report that our businesses are executing to the plan that we laid out at the start of this transition year. Our new business segment leaders are performing well as they restructure and strengthen their respective operations. Machine Clothing continues to deliver consistent strong results, and the integration of Heimbach is proceeding to plan. We expect to see the benefits of the Heimbach integration efforts accelerate into the second half of this year as our actions take effect. AEC is executing well on its current portfolio of programs, and the segment continues to win new business. The team is making progress on process improvements on our CH-53K and Gulfstream programs, and we had lower EAC adjustments in the quarter," said President and CEO, Gunnar Kleveland.
Interestingly, the stock is up 6% since reporting and currently trades at $69.53.
Read our full report on Albany 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 a solid beat of analysts’ EPS estimates and an impressive 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 23.5% since reporting. It currently trades at $12.34.
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. Interestingly, the stock is up 8.2% since the results and currently trades at $9.44.
Read our full analysis of Icahn Enterprises’s results here.
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 beat analysts’ expectations by 2.5%. It was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is up 18.5% since reporting and currently trades at $237.71.
Read our full, actionable report on Honeywell 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 $3.84 billion, down 3.4% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it logged a miss of analysts’ adjusted operating income estimates.
The stock is up 6.4% since reporting and currently trades at $257.25.
Read our full, actionable report on Illinois Tool Works 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.
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