As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the internet of things industry, including Vontier (NYSE:VNT) and its peers.
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 8% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates but EPS guidance for next quarter missing analysts’ expectations.
“Our third quarter performance reflects progress on our Connected Mobility strategy and disciplined execution,” said Mark Morelli, President and Chief Executive Officer.
Vontier pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 16% since reporting and currently trades at $37.29.
Read our full report on Vontier 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 16% since reporting. It currently trades at $420.50.
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 8.1% since the results and currently trades at $148.92.
Read our full analysis of Emerson Electric’s results here.
AMETEK (NYSE:AME)
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
AMETEK reported revenues of $1.89 billion, up 10.8% year on year. This number topped analysts’ expectations by 4.3%. It was an exceptional quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ organic revenue estimates.
The stock is up 19.3% since reporting and currently trades at $219.74.
Read our full, actionable report on AMETEK 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 down 9% since reporting and currently trades at $71.50.
Read our full, actionable report on Trimble here, it’s free.
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