Let’s dig into the relative performance of Hillenbrand (NYSE: HI) and its peers as we unravel the now-completed Q1 general industrial machinery earnings season.
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 15 general industrial machinery stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.5% below.
In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.
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 $715.9 million, down 8.8% year on year. This print exceeded analysts’ expectations by 3.6%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.
"Through the quarter, global macroeconomic conditions worsened as uncertainty around tariffs escalated significantly. In light of this, I was pleased with our business performance, which is a testament to the disciplined execution of our teams. We experienced solid year-over-year order growth in our food, health, and nutrition portfolio, as well as our separation products, along with relatively stable performance in APS aftermarket and across MTS. However, looking ahead, we expect customers to remain cautious in their capital investment decisions over the near-term given the increase in tariffs and heightened macro uncertainty, prompting us to adjust our outlook for the remainder of the fiscal year. Our teams across the enterprise are executing strategies to strengthen our supply chain and help mitigate increased costs, including surcharge pricing, alternative sourcing, and shifting production within our current footprint," said Kim Ryan, President and Chief Executive Officer of Hillenbrand.
Hillenbrand delivered the weakest full-year guidance update of the whole group. The stock is down 17.6% since reporting and currently trades at $18.62.
Read our full report on Hillenbrand here, it’s free.
Best Q1: Luxfer (NYSE: LXFR)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.
Luxfer reported revenues of $97 million, up 8.5% year on year, outperforming analysts’ expectations by 11.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Luxfer pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $11.32.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.87 billion, down 24.6% year on year, falling short of analysts’ expectations by 29%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 3.8% since the results and currently trades at $8.40.
Read our full analysis of Icahn Enterprises’s results here.
Honeywell (NASDAQ: HON)
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Honeywell reported revenues of $9.82 billion, up 7.9% year on year. This print surpassed analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 12.4% since reporting and currently trades at $225.40.
Read our full, actionable report on Honeywell here, it’s free.
Kadant (NYSE: KAI)
Headquartered in Massachusetts, Kadant (NYSE: KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Kadant reported revenues of $239.2 million, down 3.9% year on year. This number met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations and EPS guidance for next quarter missing analysts’ expectations.
The stock is down 2.5% since reporting and currently trades at $307.02.
Read our full, actionable report on Kadant here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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