As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the professional tools and equipment industry, including Lincoln Electric (NASDAQ:LECO) 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 10 professional tools and equipment stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.
Lincoln Electric (NASDAQ:LECO)
Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.02 billion, down 3.4% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We are pleased with fourth quarter and full year operating profit margin and earnings performance despite challenging industrial sector demand as diligent price/cost management, strong execution of our cost saving actions and operational improvements advanced performance towards our 2025 Higher Standard Strategy goals,” stated Steven B. Hedlund, Chair, President and Chief Executive Officer.
Lincoln Electric delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $195.71.
Is now the time to buy Lincoln Electric? Access our full analysis of the earnings results here, it’s free .
Best Q4: Hyster-Yale Materials Handling (NYSE:HY)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.07 billion, up 3.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling delivered the biggest analyst estimates beat and 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 14.6% since reporting. It currently trades at $44.26.
Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it’s free .
Weakest Q4: 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 $482.1 million, down 2.7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 9.1% since the results and currently trades at $21.31.
Read our full analysis of Kennametal’s results here.
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 $1.62 billion, up 2.3% year on year. This print came in 0.5% below analysts' expectations. Overall, it was a slower quarter as it also produced EPS guidance for next quarter missing analysts’ expectations.
Fortive had the weakest full-year guidance update among its peers. The stock is down 3.3% since reporting and currently trades at $77.21.
Read our full, actionable report on Fortive here, it’s free.
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 $349.6 million, flat year on year. This result missed analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Hillman scored the highest full-year guidance raise among its peers. The stock is down 10.4% since reporting and currently trades at $9.30.
Read our full, actionable report on Hillman here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here .