As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the general industrial machinery industry, including Crane (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 15 general industrial machinery stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.5% below.
In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results.
Crane (NYSE:CR)
Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Crane reported revenues of $548.3 million, up 3.4% year on year. This print fell short of analysts’ expectations by 7.8%. Overall, it was a slower quarter for the company with a miss of analysts’ adjusted operating income and EPS estimates.
Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "We delivered another quarter of excellent results, with 34% adjusted EPS growth driven by 6% core sales growth, reflecting continued strong execution by our teams globally. Furthermore, demand trends across our strategic growth platforms were also encouraging in the quarter, with 6% year-over-year core order growth and 10% year-over-year core backlog growth, giving us confidence as we close out the year and increasingly look toward 2025. Taken together, we are raising our 2024 adjusted EPS outlook to a range of $5.05-$5.20, up from our prior view of $4.95-$5.15.”
Crane delivered the weakest performance against analyst estimates of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $153.47.
Read our full report on Crane here, it’s free.
Best Q3: 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 $99.4 million, up 2.1% year on year, outperforming analysts’ expectations by 15.9%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Luxfer pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.3% since reporting. It currently trades at $13.18.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $2.22 billion, down 25.7% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the slowest revenue growth in the group. As expected, the stock is down 28.7% since the results and currently trades at $9.19.
Read our full analysis of Icahn Enterprises’s results here.
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 $271.6 million, up 11.2% year on year. This print beat analysts’ expectations by 2%. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 11.5% since reporting and currently trades at $357.72.
Read our full, actionable report on Kadant here, it’s free.
Otis (NYSE:OTIS)
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company.
Otis reported revenues of $3.55 billion, flat year on year. This number lagged analysts' expectations by 0.7%. It was a slower quarter as it also recorded a miss of analysts’ adjusted operating income estimates.
The stock is down 9% since reporting and currently trades at $92.29.
Read our full, actionable report on Otis here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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