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Professional Tools and Equipment Stocks Q1 Highlights: Hillman (NASDAQ:HLMN)


Max Juang /
2024/07/10 4:51 am EDT

Let's dig into the relative performance of Hillman (NASDAQ:HLMN) and its peers as we unravel the now-completed Q1 professional tools and equipment earnings season.

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 9 professional tools and equipment stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 0.7%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and professional tools and equipment stocks have had a rough stretch, with share prices down 11.1% on average since the previous earnings results.

Hillman (NASDAQ:HLMN)

Established when Max Hillman purchased a franchise operation, Hillman (NASDAQGM:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.

Hillman reported revenues of $350.3 million, flat year on year, falling short of analysts' expectations by 1.2%. It was an ok quarter for the company with a solid beat of analysts' earnings estimates.

"We started 2024 off on the right foot with strong bottom-line results driven by healthy margins," stated Doug Cahill, Chairman, President, and Chief Executive Officer of Hillman.

Hillman Total Revenue

The stock is down 13.6% since reporting and currently trades at $8.66.

Is now the time to buy Hillman? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $1.06 billion, up 5.7% year on year, outperforming analysts' expectations by 2.4%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates.

Hyster-Yale Materials Handling Total Revenue

Hyster-Yale Materials Handling delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.6% since reporting. It currently trades at $65.36.

Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Middleby (NASDAQ:MIDD)

Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.

Middleby reported revenues of $926.9 million, down 8% year on year, falling short of analysts' expectations by 5.5%. It was a weak quarter for the company with a miss of analysts' earnings and organic revenue estimates.

Middleby had the slowest revenue growth in the group. As expected, the stock is down 15.9% since the results and currently trades at $119.36.

Read our full analysis of Middleby's results here.

ESAB (NYSE:ESAB)

Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.

ESAB reported revenues of $689.7 million, flat year on year, surpassing analysts' expectations by 5.5%. Looking more broadly, it was a strong quarter for the company with a solid beat of analysts' earnings estimates and in-line EBITDA guidance for the full year.

ESAB delivered the biggest analyst estimates beat among its peers. The stock is down 13% since reporting and currently trades at $92.07.

Read our full, actionable report on ESAB here, it's free.

Fortive (NYSE:FTV)

Taking its name from the Latin root 'fort' meaning strong, Fortive (NYSE:FTV) manufactures products and develops software for numerous industries.

Fortive reported revenues of $1.52 billion, up 4.4% year on year, in line with analysts' expectations. Looking more broadly, it was an ok quarter for the company with a solid beat of analysts' organic revenue estimates but full-year revenue guidance missing analysts' expectations.

The stock is down 9.9% since reporting and currently trades at $72.64.

Read our full, actionable report on Fortive here, it's free.

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