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Professional Tools and Equipment Q1 Earnings: Hyster-Yale Materials Handling (NYSE:HY) is the Best in the Biz


Petr Huřťák /
2024/07/03 5:20 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 Hyster-Yale Materials Handling (NYSE:HY) and the best and worst performers in the professional tools and equipment industry.

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 10.5% on average since the previous earnings results.

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, topping 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 of the whole group. The stock is up 13.4% since the results and currently trades at $67.03.

Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results 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, outperforming analysts' expectations by 5.5%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates.

ESAB Total Revenue

ESAB delivered the biggest analyst estimates beat among its peers. The stock is down 12.5% since the results and currently trades at $92.6.

Is now the time to buy ESAB? 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 estimates.

Middleby had the slowest revenue growth in the group. The stock is down 14.9% since the results and currently trades at $120.9.

Read our full analysis of Middleby's results here.

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 among its peers. The stock is down 21.9% since the results and currently trades at $185.39.

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

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 a weaker quarter for the company, with a miss of analysts' revenue estimates.

The stock is down 12.4% since the results and currently trades at $8.78.

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

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