Engineered Components and Systems Stocks Q3 Teardown: Mayville Engineering (NYSE:MEC) Vs The Rest

About this update from Timken India Limited

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Mayville Engineering NYSE:MEC and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 12 engineered components and systems stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results. Mayville Engineering NYSE:MEC Originally founded solely on tool and die manufacturing, Mayville Engineering Company NYSE:MEC specializes in metal fabrication, tube bending, and welding to be used in various industries. Mayville Engineering reported revenues of $144.3 million, up 6.6% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates. Unsurprisingly, the stock is down 8.1% since reporting and currently trades at $16.58. Best Q3: Timken NYSE:TKREstablished after the founder noticed the difficulty freight wagons had making sharp turns, Timken NYSE:TKR is a provider of industrial parts used across various sectors. Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates. The market seems content with the results as the stock is up 2.5% since reporting. It currently trades at $79.12. Weakest Q3: Park-Ohio NASDAQ:PKOHBased in Cleveland, Park-Ohio NASDAQ:PKOH provides supply chain management services, capital equipment, and manufactured components. Park-Ohio reported revenues of $398.6 m...

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