Looking back on industrial machinery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Proto Labs (NYSE:PRLB) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 58 industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Proto Labs (NYSE:PRLB)
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Proto Labs reported revenues of $135.4 million, up 7.8% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Protolabs generated another quarter of accelerated growth and record revenue, supported by strong performance in several key end markets, and a substantial increase in revenue per customer contact. I am very encouraged by the progress we’ve made over the last two quarters—we have significant momentum into year-end," commented President and Chief Executive Officer Suresh Krishna.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $52.86.
Is now the time to buy Proto Labs? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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 $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.3% since reporting. It currently trades at $7.29.
Is now the time to buy Icahn Enterprises? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Albany (NYSE:AIN)
Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.
Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.4% since the results and currently trades at $51.11.
Read our full analysis of Albany’s results here.
Kennametal (NYSE:KMT)
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $498 million, up 3.3% year on year. This result surpassed analysts’ expectations by 4.3%. It was an incredible quarter as it also put up a solid beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 32.1% since reporting and currently trades at $29.21.
Read our full, actionable report on Kennametal here, it’s free for active Edge members.
Mueller Water Products (NYSE:MWA)
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Mueller Water Products reported revenues of $380.8 million, up 9.4% year on year. This number beat analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.
The stock is flat since reporting and currently trades at $25.10.
Read our full, actionable report on Mueller Water Products here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.