Winners And Losers Of Q2: Illinois Tool Works (NYSE:ITW) Vs The Rest Of The General Industrial Machinery Stocks

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 Illinois Tool Works (NYSE:ITW).

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.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some general industrial machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

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. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.

“While the demand environment continued to moderate across our portfolio, we delivered a solid quarter with strong operational execution and profitability,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

Interestingly, the stock is up 2% since reporting and currently trades at $253.18.

Read our full report on Illinois Tool Works 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 a strong 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 29.7% since reporting. It currently trades at $134.06.

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 13.3% since the results and currently trades at $32.96.

Read our full analysis of Hillenbrand’s results here.

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 $2.10 million, down 99.2% year on year, falling short of analysts’ expectations by 99.3%. Revenue aside, it was a weak quarter for the company with EPS guidance for the full year falling below expectations.

Albany had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 9.8% since reporting and currently trades at $94.16.

Read our full, actionable report on Albany here, it’s free.

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 $2.55 billion, flat year on year, surpassing analysts’ expectations by 13.9%. Overall, it was a mixed quarter for the company with EPS missing analysts' estimates.

The stock is down 20.8% since reporting and currently trades at $13.25.

Read our full, actionable report on Icahn Enterprises here, it’s free.

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