As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the internet of things industry, including Trimble (NASDAQ: TRMB) 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 Q2. 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 9.9% on average since the latest earnings results.

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 $875.7 million, flat year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

"In the second quarter, the Trimble team delivered record annualized recurring revenue of $2.21 billion and surpassed expectations on both the top and bottom lines. Our results reflect ongoing momentum in the business and continued validation of our Connect & Scale strategy," said Rob Painter, president and CEO of Trimble.

Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $80.22.

Is now the time to buy Trimble? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: 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 $2.14 billion, up 4.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $361.53.

Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q2: 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 $38.31 million, down 21% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

SmartRent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 48% since the results and currently trades at $1.45.

Read our full analysis of SmartRent’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 $1.78 billion, up 2.5% year on year. This number topped analysts’ expectations by 2.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ revenue and EBITDA estimates.

The stock is up 5.6% since reporting and currently trades at $186.75.

Read our full, actionable report on AMETEK here, it’s free for active Edge members.

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 $773.5 million, up 11.1% year on year. This print surpassed analysts’ expectations by 5.4%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ organic revenue and adjusted operating income estimates.

Vontier delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 8.3% since reporting and currently trades at $43.03.

Read our full, actionable report on Vontier 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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