As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional tools and equipment industry, including Fortive (NYSE:FTV) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are 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 10 professional tools and equipment stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% since the latest earnings results.
Taking its name from the Latin root of “strong”, Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.
Fortive reported revenues of $1.62 billion, up 2.3% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations.
James A. Lico, President and Chief Executive Officer, stated, “Our fourth quarter results once again demonstrated strong execution despite the mixed macro environment, leading to better-than-expected core growth, earnings, and free cash flow.”
Fortive delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 5.3% since reporting and currently trades at $75.59.
Read our full report on Fortive here, it’s free.
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Hyster-Yale Materials Handling reported revenues of $1.07 billion, up 3.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.5% since reporting. It currently trades at $45.88.
