The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Terex (NYSE:TEX) and the rest of the heavy machinery stocks fared in Q3.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 21 heavy machinery stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.
Terex (NYSE:TEX)
With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.39 billion, up 14.3% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ organic revenue estimates.
Unsurprisingly, the stock is down 6.7% since reporting and currently trades at $52.26.
Read our full report on Terex here, it’s free for active Edge members.
Best Q3: Caterpillar (NYSE:CAT)
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $17.64 billion, up 9.5% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $589.30.
Is now the time to buy Caterpillar? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Wabash (NYSE:WNC)
With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 19.1% since the results and currently trades at $9.90.
Read our full analysis of Wabash’s results here.
Oshkosh (NYSE:OSK)
Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Oshkosh reported revenues of $2.69 billion, down 1.9% year on year. This print came in 5.8% below analysts' expectations. Overall, it was a slower quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
The stock is down 4.2% since reporting and currently trades at $129.96.
Read our full, actionable report on Oshkosh here, it’s free for active Edge members.
Blue Bird (NASDAQ:BLBD)
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $409.4 million, up 16.9% year on year. This result topped analysts’ expectations by 7.7%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Blue Bird pulled off the biggest analyst estimates beat among its peers. The stock is down 7% since reporting and currently trades at $51.04.
Read our full, actionable report on Blue Bird 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.
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