Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at 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 9 professional tools and equipment stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.9% below.
While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% 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 $745.6 million, up 9.9% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $94.18.
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Best Q1: Kennametal NYSE:KMT
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal NYSE:KMT is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $592.6 million, up 21.8% year on year, outperforming analysts’ expectations by 4.8%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.
Kennametal 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 2.3% since reporting. It currently trades at $36.65.
Weakest Q1: Hillman NASDAQ:HLMN
Established when Max Hillman purchased a franchise operation, Hillman NASDAQ:HLMN designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $370.1 million, up 3% year on year, falling short of analysts’ expectations by 0.7%. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.
As expected, the stock is down 16.7% since the results and currently trades at $7.31.
Stanley Black & Decker NYSE:SWK
With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker NYSE:SWK is a manufacturer primarily catering to the tool and outdoor equipment industry.
Stanley Black & Decker reported revenues of $3.85 billion, up 2.7% year on year. This number surpassed analysts’ expectations by 2.7%. It was an exceptional quarter as it also put up a beat of analysts’ EPS and EBITDA estimates.
The stock is flat since reporting and currently trades at $78.74.
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 $1.07 billion, up 7.7% year on year. This print topped analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 2.5% since reporting and currently trades at $60.21.
Read our full, actionable report on Fortive here, it’s free.