Spotting Winners: Crane Company (NYSE:CR) And General Industrial Machinery Stocks In Q2

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the general industrial machinery stocks, including Crane Company (NYSE:CR) and its peers.

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 2.5% since the latest earnings results.

Crane Company (NYSE:CR)

Based in Connecticut, Crane Company (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Crane Company reported revenues of $581.2 million, up 14.1% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates.

Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: “Our Crane team delivered 18% adjusted EPS growth in the quarter, driven by 9% core sales growth and solid core operating leverage of 40%. Our results in the quarter reflect benefits from our strategic investments in growth and commercial excellence, which continue to add value for our customers and drive above market core sales growth across both Aerospace & Electronics and Process Flow Technologies."

The stock is down 3.6% since reporting and currently trades at $153.89.

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

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, outperforming analysts’ expectations by 3.3%. It was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $128.78.

Is now the time to buy 3M? 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.

Icahn Enterprises (NASDAQ:IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.55 billion, flat year on year, surpassing analysts’ expectations by 13.9%. More broadly, it was a mixed quarter for the company.

The stock is down 5% since reporting and currently trades at $15.89.

Read our full, actionable report on Icahn Enterprises here, it’s free.

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