As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at general industrial machinery stocks, starting with GE Aerospace (NYSE: GE).
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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
GE Aerospace (NYSE: GE)
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
GE Aerospace reported revenues of $11.02 billion, up 34.1% year on year. This print exceeded analysts’ expectations by 15.6%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EBITDA estimates.
GE Aerospace achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 12.8% since reporting and currently trades at $300.41.
Best Q2: 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 $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $13.90.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.9% since the results and currently trades at $8.45.
Read our full analysis of Icahn Enterprises’s results here.
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 $577.2 million, up 9.2% year on year. This result surpassed analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also produced full-year EPS guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The stock is down 3.1% since reporting and currently trades at $184.14.
Read our full, actionable report on Crane here, it’s free.
Kadant (NYSE: KAI)
Headquartered in Massachusetts, Kadant (NYSE: KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Kadant reported revenues of $255.3 million, down 7.1% year on year. This print beat analysts’ expectations by 3.8%. It was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 13.4% since reporting and currently trades at $297.58.
Read our full, actionable report on Kadant here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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