Let’s dig into the relative performance of GE Aerospace (NYSE: GE) 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 2.1% while next quarter’s revenue guidance was 1.5% below.
Thankfully, share prices of the companies have been resilient as they are up 6.7% on average since the latest earnings results.
GE Aerospace (NYSE: GE)
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
GE Aerospace reported revenues of $9.00 billion, up 11.5% year on year. This print fell short of analysts’ expectations by 7.9%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 40.1% since reporting and currently trades at $249.81.
Is now the time to buy GE Aerospace? Access our full analysis of the earnings results 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 achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17.3% since reporting. It currently trades at $11.72.
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 7.6% since the results and currently trades at $8.06.
Read our full analysis of Icahn Enterprises’s results here.
Columbus McKinnon (NASDAQ: CMCO)
With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Columbus McKinnon reported revenues of $246.9 million, down 7% year on year. This print came in 1.3% below analysts' expectations. Overall, it was a mixed quarter for the company.
The stock is down 14.5% since reporting and currently trades at $15.17.
Read our full, actionable report on Columbus McKinnon here, it’s free.
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 result surpassed analysts’ expectations by 2.5%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 10.6% since reporting and currently trades at $221.72.
Read our full, actionable report on Honeywell 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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