Let’s dig into the relative performance of Hudson Technologies (NASDAQ:HDSN) and its peers as we unravel the now-completed Q2 specialty equipment distributors earnings season.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 10 specialty equipment distributors stocks we track reported a softer Q2. As a group, revenues missed analysts’ consensus estimates by 1.7%.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
While some specialty equipment distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results.
Slowest Q2: Hudson Technologies (NASDAQ:HDSN)
Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $75.28 million, down 16.8% year on year. This print fell short of analysts’ expectations by 4.9%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, “Despite stronger refrigerant sales volume, our second quarter financial performance reflected the continued headwinds of pricing pressure for certain refrigerants combined with lower activity levels from our DLA contract as compared to last year."
Hudson Technologies delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 8.8% since reporting and currently trades at $8.19.
Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.
Best Q2: Richardson Electronics (NASDAQ:RELL)
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $47.37 million, down 19.5% year on year, falling short of analysts’ expectations by 1.3%. However, the business still had a satisfactory quarter with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 7.8% since reporting. It currently trades at $11.93.
Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free.
Alta (NYSE:ALTG)
Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Alta reported revenues of $488.1 million, up 4.2% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 21.2% since the results and currently trades at $6.45.
Read our full analysis of Alta’s results here.
Titan Machinery (NASDAQ:TITN)
Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.
Titan Machinery reported revenues of $633.7 million, down 1.4% year on year. This number was in line with analysts’ expectations. However, it was a weaker quarter as its performance in other areas of the business was disappointing.
The stock is down 4.4% since reporting and currently trades at $13.55.
Read our full, actionable report on Titan Machinery here, it’s free.
United Rentals (NYSE:URI)
Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
United Rentals reported revenues of $3.77 billion, up 6.2% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
United Rentals pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 12.1% since reporting and currently trades at $802.64.
Read our full, actionable report on United Rentals here, it’s free.
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