Professional Tools and Equipment Stocks Q2 Results: Benchmarking ESAB (NYSE:ESAB)
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 ESAB (NYSE:ESAB) 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.
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. However, professional tools and equipment stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
ESAB (NYSE:ESAB)
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
ESAB reported revenues of $707.1 million, down 1.9% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a decent quarter for the company with an impressive beat of analysts’ EPS estimates but a miss of analysts’ organic revenue estimates.
“The ESAB team continues to execute well in a challenging business environment. We are benefiting from our exposure to high-growth markets, such as India and the Middle East, as well as our strategy to improve our mix and focus on less cyclical end markets. Our recent acquisition of the welding business of Linde Bangladesh fills a gap for ESAB in Asia and cements our position as the leading Fabtech company in this fast-growing region,” stated Shyam P. Kambeyanda, President and CEO of ESAB.
Interestingly, the stock is up 2.3% since reporting and currently trades at $100.54.
Is now the time to buy ESAB? 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 delivered 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 12% since reporting. It currently trades at $61.26.
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 5.6% since the results and currently trades at $72.39.
Read our full analysis of Fortive’s results here.
Lincoln Electric (NASDAQ:LECO)
Headquartered in Ohio, Lincoln Electric (NASDAQGS: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. Revenue aside, 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 7.6% since reporting and currently trades at $195.59.
Read our full, actionable report on Lincoln Electric here, it’s free.
Middleby (NASDAQ:MIDD)
Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.
Middleby reported revenues of $991.5 million, down 4.7% year on year, in line with analysts’ expectations. Revenue aside, it was a decent quarter for the company with a solid beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
Middleby had the slowest revenue growth among its peers. The stock is up 4.6% since reporting and currently trades at $142.01.
Read our full, actionable report on Middleby here, it’s free.
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