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 Otis (NYSE:OTIS) and the rest of the general industrial machinery stocks fared in Q1.
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 15 general industrial machinery stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1.5% below.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Otis (NYSE:OTIS)
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company.
Otis reported revenues of $3.35 billion, down 2.5% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ organic revenue and EBITDA estimates.
The stock is down 4.8% since reporting and currently trades at $94.09.
Read our full report on Otis here, it’s free.
Best Q1: Luxfer (NYSE:LXFR)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.
Luxfer reported revenues of $97 million, up 8.5% year on year, outperforming analysts’ expectations by 11.9%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Luxfer delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $11.31.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $1.87 billion, down 24.6% year on year, falling short of analysts’ expectations by 29%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Icahn Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.7% since the results and currently trades at $8.32.
Read our full analysis of Icahn Enterprises’s results here.
GE Aerospace (NYSE:GE)
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
GE Aerospace reported revenues of $9.00 billion, up 11.5% year on year. This result lagged analysts' expectations by 7.9%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.
The stock is up 34.4% since reporting and currently trades at $239.59.
Read our full, actionable report on GE Aerospace here, it’s free.
Honeywell (NASDAQ:HON)
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Honeywell reported revenues of $9.82 billion, up 7.9% year on year. This print surpassed analysts’ expectations by 2.5%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
The stock is up 10.8% since reporting and currently trades at $222.25.
Read our full, actionable report on Honeywell here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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