As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the industrial machinery industry, including Proto Labs (NYSE:PRLB) and its peers.
Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 58 industrial machinery stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.8% 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.
Proto Labs (NYSE:PRLB)
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Proto Labs reported revenues of $135.1 million, up 7.5% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
“Protolabs generated record quarterly revenue in the second quarter, demonstrating the value we provide to customers and reinforcing our ability to execute in a dynamic and uncertain environment," commented President and Chief Executive Officer Suresh Krishna.
Interestingly, the stock is up 28.4% since reporting and currently trades at $50.20.
Is now the time to buy Proto Labs? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 11% since reporting. It currently trades at $13.70.
Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 5.9% since the results and currently trades at $8.45.
Read our full analysis of Icahn Enterprises’s results here.
Applied Industrial (NYSE:AIT)
Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.
Applied Industrial reported revenues of $1.22 billion, up 5.5% year on year. This print topped analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EBITDA estimates.
The stock is down 3.7% since reporting and currently trades at $265.44.
Read our full, actionable report on Applied Industrial here, it’s free.
IDEX (NYSE:IEX)
Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
IDEX reported revenues of $865.4 million, up 7.2% year on year. This result beat analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
The stock is down 11.1% since reporting and currently trades at $164.93.
Read our full, actionable report on IDEX here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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