As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at internet of things stocks, starting with SmartRent (NYSE:SMRT).
Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.
The 6 internet of things stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.8% on average since the latest earnings results.
SmartRent (NYSE:SMRT)
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $36.2 million, down 10.6% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
"The third quarter was a period of substantial progress for SmartRent on many fronts. We continued to grow our Annual Recurring Revenue and significantly narrowed our operating loss in line with the commitments made on the previous earnings call. Importantly, we continued to expand our deployed base which now includes more than 870,000 units, up 11% from the prior year," commented Frank Martell, President and CEO of SmartRent.
SmartRent delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 30% since reporting and currently trades at $1.78.
Is now the time to buy SmartRent? Access our full analysis of the earnings results here, it’s free.
Best Q3: Rockwell Automation (NYSE:ROK)
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Rockwell Automation reported revenues of $2.32 billion, up 13.8% year on year, outperforming analysts’ expectations by 4.9%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Rockwell Automation scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15% since reporting. It currently trades at $417.06.
Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Emerson Electric (NYSE:EMR)
Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Emerson Electric reported revenues of $4.86 billion, up 5.1% year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations significantly.
Emerson Electric delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.5% since the results and currently trades at $146.75.
Read our full analysis of Emerson Electric’s results here.
Vontier (NYSE:VNT)
A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Vontier reported revenues of $752.5 million, flat year on year. This result beat analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but EPS guidance for next quarter missing analysts’ expectations.
Vontier pulled off the highest full-year guidance raise among its peers. The stock is down 9.7% since reporting and currently trades at $38.61.
Read our full, actionable report on Vontier here, it’s free.
Trimble (NASDAQ:TRMB)
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Trimble reported revenues of $901.2 million, up 2.9% year on year. This print surpassed analysts’ expectations by 3.5%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Trimble had the weakest full-year guidance update among its peers. The stock is up 2.1% since reporting and currently trades at $80.24.
Read our full, actionable report on Trimble here, it’s free.
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