Wrapping up Q4 earnings, we look at the numbers and key takeaways for the general industrial machinery stocks, including Albany (NYSE: AIN) and its peers.
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 slower Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 2.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.8% since the latest earnings results.
Albany (NYSE: AIN)
Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Albany reported revenues of $286.9 million, down 11.3% year on year. This print fell short of analysts’ expectations by 4.2%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
"We continue to perform well in both our businesses, as evidenced by strong results at Machine Clothing and ongoing operational progress steered by new leadership at Engineered Composites," said Gunnar Kleveland, President and Chief Executive Officer.
Albany delivered the slowest revenue growth of the whole group. The stock is down 17.1% since reporting and currently trades at $65.38.
Read our full report on Albany here, it’s free.
Best Q4: 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 $10.81 billion, up 14.3% year on year, outperforming analysts’ expectations by 13.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
GE Aerospace delivered the fastest revenue growth among its peers. The stock is down 2.2% since reporting. It currently trades at $184.26.
Is now the time to buy GE Aerospace? Access our full analysis of the earnings results here, it’s free.
Columbus McKinnon (NASDAQ: CMCO)
With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Columbus McKinnon reported revenues of $234.1 million, down 7.9% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Columbus McKinnon delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 62.6% since the results and currently trades at $13.25.
Read our full analysis of Columbus McKinnon’s results here.
3M (NYSE: MMM)
Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
3M reported revenues of $6.01 billion, flat year on year. This number surpassed analysts’ expectations by 4.5%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
The stock is down 3% since reporting and currently trades at $136.85.
Read our full, actionable report on 3M here, it’s free.
Kadant (NYSE: KAI)
Headquartered in Massachusetts, Kadant (NYSE: KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Kadant reported revenues of $258 million, up 8.1% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
The stock is down 9.7% since reporting and currently trades at $321.67.
Read our full, actionable report on Kadant here, it’s free.
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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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