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 general industrial machinery industry, 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 14 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q3: 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 $261.4 million, down 12.4% year on year. This print fell short of analysts’ expectations by 12.8%. Overall, it was a disappointing quarter for the company with a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.
Gunnar Kleveland, Albany International’s President and Chief Executive Officer said, “As announced last week, we are continuing the transformation of Albany International and have initiated a strategic review of our structures assembly business and its associated production site in Salt Lake City, including a potential sale of all or part of the site. Alongside this effort we took decisive action to de-risk our program assumptions which marks an important first step in resolving the issue. While some near-term uncertainty remains, our remaining Aerospace portfolio is becoming more strategically aligned with our priorities to secure growth and new business where we have a distinct competitive advantage that leverages our differentiated advanced technologies and delivers greater returns.”
Albany delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 16.9% since reporting and currently trades at $45.35.
Read our full report on Albany here, it’s free for active Edge members.
Best Q3: 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 $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $8.89.
Is now the time to buy Icahn Enterprises? Access our full analysis of the earnings results here, it’s free for active Edge members.
L.B. Foster (NASDAQ:FSTR)
Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
L.B. Foster reported revenues of $138.3 million, flat year on year, falling short of analysts’ expectations by 10.4%. It was a softer quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.
As expected, the stock is down 2.9% since the results and currently trades at $26.72.
Read our full analysis of L.B. Foster’s results here.
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 $261 million, up 7.7% year on year. This result topped analysts’ expectations by 8.5%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
The stock is up 2.1% since reporting and currently trades at $15.41.
Read our full, actionable report on Columbus McKinnon here, it’s free for active Edge members.
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 $271.6 million, flat year on year. This print surpassed analysts’ expectations by 4.2%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Kadant had the weakest full-year guidance update among its peers. The stock is down 12.1% since reporting and currently trades at $262.10.
Read our full, actionable report on Kadant here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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