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Reflecting On General Industrial Machinery Stocks’ Q1 Earnings: Dover (NYSE:DOV)


Adam Hejl /
2024/07/04 7:44 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Dover (NYSE:DOV) and the best and worst performers in the general industrial machinery industry.

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 13 general industrial machinery stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2.5%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the general industrial machinery stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.3% on average since the previous earnings results.

Dover (NYSE:DOV)

A company who manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.

Dover reported revenues of $2.09 billion, flat year on year, topping analysts' expectations by 2.9%. It was a very strong quarter for the company, with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.

Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's first quarter results were in line with our expectations. We are particularly pleased with the success of our organic growth platforms, as well as the order trends in the quarter, which validate the aggressive working capital posture we adopted in 2023. Order momentum in the quarter was strong and broad-based, particularly in our shorter-cycle end markets, building off the prior year exit rate and bolstering confidence in our full year outlook. Strong growth in several key markets and improving performance in biopharma components set us up for favorable sequential margin mix over the balance of the year.

Dover Total Revenue

The stock is up 3.2% since the results and currently trades at $176.97.

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

Best Q1: General Electric (NYSE:GE)

Tracing its roots back to the work of Thomas Edison, General Electric (NYSE:GE) is a provider of components and solutions for the aerospace, renewable energy, and power sectors.

General Electric reported revenues of $16.05 billion, up 17.2% year on year, outperforming analysts' expectations by 2.2%. It was an impressive quarter for the company with revenue and EPS exceeding expectations. 

General Electric Total Revenue

General Electric scored the fastest revenue growth among its peers. The stock is up 8.6% since the results and currently trades at $163.

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

Slowest Q1: Icahn Enterprises (NASDAQ:IEP)

Founded and mainly owned by renowned investor Carl Icahn, Icahn (NYSE:IEP) is a holding company that has investments in the energy, automotive, food packaging, and metal industries.

Icahn Enterprises reported revenues of $2.47 billion, down 7.7% year on year, falling short of analysts' expectations by 11.6%. It was a weak quarter for the company, with EPS missing analysts' expectations.

The stock is down 2.5% since the results and currently trades at $16.74.

Read our full analysis of Icahn Enterprises's results here.

3M (NYSE:MMM)

With its original mining venture failing due to anorthosite having no commercial value, 3M (NYSE:MMM) is a provider of products used in the industrial, safety and graphics, healthcare, electronics and energy, and consumer sectors.

3M reported revenues of $5.72 billion, down 28.8% year on year, falling short of analysts' expectations by 25.4%. It was a weak quarter for the company, with organic revenue and EPS exceeding analysts' estimates.

3M had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 10.3% since the results and currently trades at $101.62.

Read our full, actionable report on 3M here, it's free.

Crane Company (NYSE:CR)

Playing a significant role in the construction of the Hoover Dam and Golden Gate Bridge, Crane Company (NYSE:CR) manufactures engineered components and specialized equipment for numerous industries.

Crane Company reported revenues of $565.3 million, up 10% year on year, surpassing analysts' expectations by 3.5%. It was an impressive quarter for the company, with a decent beat of analysts' earnings estimates.

Crane Company achieved the biggest analyst estimates beat among its peers. The stock is up 10.7% since the results and currently trades at $144.62.

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

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