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Q1 Earnings Roundup: The Middleby (NASDAQ:MIDD) And The Rest Of The Professional Tools and Equipment Segment


Radek Strnad /
2024/06/27 5:10 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Middleby (NASDAQ:MIDD) and the rest of the professional tools and equipment stocks fared in Q1.

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 8.8% on average since the previous earnings results.

Weakest Q1: The 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.

The 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' operating margin and earnings estimates.

“Near-term demand conditions proved to be difficult as we started 2024. We expect improved conditions for the second quarter and remain optimistic for the remainder of the year, as channel inventories have returned to normalized levels and order activity is trending in a positive direction. Our overall profitability remains strong, despite the low order volumes significantly impacting our residential business. We were pleased to again post record cash flows in the quarter, with expected strong cash generation for the entire year,” said Tim FitzGerald, CEO of The Middleby Corporation.

The Middleby Total Revenue

The Middleby delivered the slowest revenue growth of the whole group. The stock is down 13.1% since the results and currently trades at $123.36.

Read our full report on The Middleby 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 pulled off the fastest revenue growth among its peers. The stock is up 17.1% since the results and currently trades at $69.2.

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

Lincoln Electric (NASDAQ:LECO)

Famous for its “guaranteed employment” policy of not laying off its employees during the Great Company, Lincoln Electric (NASDAQGS:LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $981.2 million, down 5.6% year on year, falling short of analysts' expectations by 5.7%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.

Lincoln Electric had the weakest performance against analyst estimates in the group. The stock is down 21.3% since the results and currently trades at $187.

Read our full analysis of Lincoln Electric's results here.

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, falling short of analysts' expectations by 0.2%. It was a decent quarter for the company, with an impressive beat of analysts' operating margin estimates but full-year revenue guidance missing analysts' expectations.

The stock is down 9.3% since the results and currently trades at $73.07.

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

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%. It was a very strong quarter for the company, with an impressive beat of analysts' operating margin estimates and a solid beat of analysts' earnings estimates.

ESAB pulled off the biggest analyst estimates beat among its peers. The stock is down 9.8% since the results and currently trades at $95.49.

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

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