Q2 General Industrial Machinery Earnings Review: First Prize Goes to 3M (NYSE:MMM)

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 3M (NYSE:MMM).

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.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some general industrial machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.

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. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.

Interestingly, the stock is up 24.5% since reporting and currently trades at $128.78.

Is now the time to buy 3M? Access our full analysis of the earnings results here, it’s free.

Honeywell (NASDAQ:HON)

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is an aerospace and defense manufacturing company building technologies, performance materials, and safety and productivity solutions.

Honeywell reported revenues of $9.58 billion, up 4.7% year on year, outperforming analysts’ expectations by 1.7%. It was a very strong quarter for the company with an impressive beat of analysts’ organic revenue estimates.

Honeywell scored the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.8% since reporting. It currently trades at $205.55.

Is now the time to buy Honeywell? 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 had the weakest full-year guidance update in the group. As expected, the stock is down 13.7% since the results and currently trades at $32.81.

Read our full analysis of Hillenbrand’s results here.

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

The stock is down 1.1% since reporting and currently trades at $245.33.

Read our full, actionable report on Illinois Tool Works here, it’s free.

L.B. Foster (NASDAQ:FSTR)

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

L.B. Foster reported revenues of $140.8 million, down 4.9% year on year, surpassing analysts’ expectations by 2.5%. Revenue aside, it was a slower quarter for the company with a miss of analysts’ earnings estimates and underwhelming EBITDA guidance for the full year.

The stock is down 7.9% since reporting and currently trades at $19.11.

Read our full, actionable report on L.B. Foster here, it’s free.

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