Reflecting On General Industrial Machinery Stocks’ Q2 Earnings: Dover (NYSE:DOV)

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including Dover (NYSE:DOV) 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 14 general industrial machinery stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 4% below.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some general industrial machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

Dover (NYSE:DOV)

A company who manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.

Dover reported revenues of $2.18 billion, up 3.7% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates.

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's second quarter results were solid, driven by excellent production performance and strong shipment rates on orders received. Volume strength was broad-based across the portfolio, with four of our five operating segments posting top-line growth. Margin expansion was robust during the period due to previous portfolio additions, positive mix impact from our growth platforms, and our rigorous cost containment and productivity actions. Order trends continued their positive trajectory, bolstering our confidence in the second half outlook.

Interestingly, the stock is up 3% since reporting and currently trades at $181.54.

Is now the time to buy Dover? Access our full analysis of the earnings results here, it’s free.

Best Q2: 3M (NYSE:MMM)

Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.

3M reported revenues of $6.02 billion, down 24.7% year on year, outperforming analysts’ expectations by 3.3%. It was an impressive quarter for the company with a solid beat of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $128.78.

Is now the time to buy 3M? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Hillenbrand (NYSE:HI)

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $786.6 million, up 9.8% year on year, falling short of analysts’ expectations by 3.9%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.

Hillenbrand posted the weakest full-year guidance update in the group. As expected, the stock is down 13.7% since the results and currently trades at $32.81.

Read our full analysis of Hillenbrand’s results here.

Columbus McKinnon (NASDAQ:CMCO)

With 19 different brands across the globe, Columbus McKinnon (NASDAQGS:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $239.7 million, up 1.8% year on year, in line with analysts’ expectations. Overall, it was a good quarter for the company with a decent beat of analysts’ EPS estimates.

The stock is down 16.8% since reporting and currently trades at $32.63.

Read our full, actionable report on Columbus McKinnon 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 $4.03 billion, down 1.2% year on year, falling short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.

The stock is down 1.1% since reporting and currently trades at $245.33.

Read our full, actionable report on Illinois Tool Works here, it’s free.

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