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A Look Back at General Industrial Machinery Stocks' Q1 Earnings: Kadant (NYSE:KAI) Vs The Rest Of The Pack


Jabin Bastian /
2024/07/11 7:19 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 Kadant (NYSE:KAI) 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 14 general industrial machinery stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 1.4%. 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 while some of the general industrial machinery stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.7% on average since the previous earnings results.

Kadant (NYSE:KAI)

Headquartered in Massachusetts, Kadant (NYSE:KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

Kadant reported revenues of $249 million, up 8.4% year on year, exceeding analysts' expectations by 1.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.

Management Commentary“We had a solid start to 2024 with record revenue and strong adjusted EBITDA and adjusted EPS in the first quarter,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc.

Kadant Total Revenue

The stock is up 12.4% since reporting and currently trades at $306.56.

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

Best Q1: L.B. Foster (NASDAQ:FSTR)

A pioneer in the railroad industry, L.B. Foster (NASDAQGS:FSTR) is a manufacturer, fabricator, and distributor of rail products, materials, and pipeline components for various industries.

L.B. Foster reported revenues of $124.3 million, up 7.6% year on year, outperforming analysts' expectations by 12.7%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.

L.B. Foster Total Revenue

L.B. Foster scored the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 14.4% since reporting. It currently trades at $20.82.

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

Slowest Q1: Icahn Enterprises (NASDAQ:IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

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 a miss of analysts' earnings estimates.

As expected, the stock is down 1.6% since the results and currently trades at $16.9.

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

Illinois Tool Works (NYSE:ITW)

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE:ITW) manufactures engineered components and specialized equipment for numerous industries.

Illinois Tool Works reported revenues of $3.97 billion, down 1.1% year on year, falling short of analysts' expectations by 1.4%. Looking more broadly, it was a mixed quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.

The stock is down 5.8% since reporting and currently trades at $234.65.

Read our full, actionable report on Illinois Tool Works here, it's free.

Hillenbrand (NYSE:HI)

With its casket company notably burying several presidents, Hillenbrand (NYSE:HI) manufactures and sells industrial equipment to various industries.

Hillenbrand reported revenues of $785.3 million, up 13.7% year on year, falling short of analysts' expectations by 2%. Looking more broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.

The stock is down 14.1% since reporting and currently trades at $41.03.

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

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