Spotting Winners: H&E Equipment Services (NASDAQ:HEES) And Specialty Equipment Distributors Stocks In Q2
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialty equipment distributors industry, including H&E Equipment Services (NASDAQ:HEES) and its peers.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 10 specialty equipment distributors stocks we track reported a weak Q2. As a group, revenues missed analysts’ consensus estimates by 1.7%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some specialty equipment distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
Weakest Q2: H&E Equipment Services (NASDAQ:HEES)
Founded after recognizing a growth trend along the Mississippi River and opportunities developing in the earthmoving and construction equipment business, H&E (NASDAQ:HEES) offers machinery for companies to purchase or rent.
H&E Equipment Services reported revenues of $376.3 million, up 4.5% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Unsurprisingly, the stock is down 9.1% since reporting and currently trades at $48.15.
Read our full report on H&E Equipment Services here, it’s free.
Best Q2: Richardson Electronics (NASDAQ:RELL)
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $47.37 million, down 19.5% year on year, falling short of analysts’ expectations by 1.3%. However, it was still a decent quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $11.80.
Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free.
Titan Machinery (NASDAQ:TITN)
Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.
Titan Machinery reported revenues of $633.7 million, down 1.4% year on year, in line with analysts’ expectations. It was an ok quarter for the company, with EPS in line with expectations.
Interestingly, the stock is up 10.8% since the results and currently trades at $15.70.
Read our full analysis of Titan Machinery’s results here.
Karat Packaging (NASDAQ:KRT)
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Karat Packaging reported revenues of $112.6 million, up 3.5% year on year, falling short of analysts’ expectations by 1.1%. Revenue aside, it was a weak quarter for the company with a miss of analysts’ operating margin estimates and a miss of analysts’ earnings estimates.
The stock is down 9.5% since reporting and currently trades at $25.34.
Read our full, actionable report on Karat Packaging here, it’s free.
Alta (NYSE:ALTG)
Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Alta reported revenues of $488.1 million, up 4.2% year on year, falling short of analysts’ expectations by 3.4%. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is down 17.7% since reporting and currently trades at $6.74.
Read our full, actionable report on Alta here, it’s free.
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