Professional Tools and Equipment Stocks Q2 In Review: Nordson (NASDAQ:NDSN) Vs Peers

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 professional tools and equipment industry, including Nordson (NASDAQ:NDSN) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are 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 10 professional tools and equipment stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.9% 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. However, professional tools and equipment stocks have held steady amidst all this with share prices up 1.9% on average since the latest earnings results.

Nordson (NASDAQ:NDSN)

Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Nordson reported revenues of $661.6 million, up 2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ operating margin estimates.

Commenting on the Company’s fiscal 2024 third quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “We delivered third quarter revenue in line with our expectations, driven by strong organic growth in our industrial product lines. Our Advanced Technology Solutions segment sequentially grew compared to second quarter, as order entry steadily improves in electronics end markets. Across the company, the teams executed another solid operating performance delivering strong gross margins and 31% EBITDA margin. Overall, I am pleased with our focus on the customer while managing profitability well against headwinds in select businesses.”

Nordson achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $256.56.

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

Best Q2: Hyster-Yale Materials Handling (NYSE:HY)

Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.

Hyster-Yale Materials Handling reported revenues of $1.12 billion, up 2.5% year on year, outperforming analysts’ expectations by 3.5%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

Hyster-Yale Materials Handling pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.5% since reporting. It currently trades at $62.96.

Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Fortive (NYSE:FTV)

Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.

Fortive reported revenues of $1.55 billion, up 1.7% year on year, in line with analysts’ expectations. It was a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue estimates.

As expected, the stock is down 2.9% since the results and currently trades at $74.40.

Read our full analysis of Fortive’s results here.

Lincoln Electric (NASDAQ:LECO)

Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $1.02 billion, down 3.7% year on year, in line with analysts’ expectations. More broadly, it was a mixed quarter for the company with a narrow beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.

The stock is down 8.2% since reporting and currently trades at $194.27.

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

Snap-on (NYSE:SNA)

Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.

Snap-on reported revenues of $1.28 billion, flat year on year, surpassing analysts’ expectations by 6.9%. Zooming out, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.

Snap-on scored the biggest analyst estimates beat among its peers. The stock is up 2.6% since reporting and currently trades at $282.77.

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

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