Looking back on professional tools and equipment stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Nordson (NASDAQ:NDSN) 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.
While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.
Weakest Q4: Nordson (NASDAQ:NDSN)
Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Nordson reported revenues of $615.4 million, down 2.8% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ organic revenue estimates and a miss of analysts’ EBITDA estimates.
Commenting on the Company’s fiscal 2025 first quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “We experienced weakness across multiple end markets as we exited calendar year 2024, resulting in sales performance at the low end of our guidance range for our first fiscal quarter. However, we were encouraged to see broad order entry acceleration during the quarter, and backlog grew by approximately $85 million. Despite weaker sales, our teams performed well operationally and delivered earnings in line with our guidance mid-point. Overall, I am pleased with this solid execution in the face of dynamic market conditions, and we are positioned for growth as end market demand improves.”
Nordson delivered the weakest performance against analyst estimates of the whole group. The stock is down 2.2% since reporting and currently trades at $212.82.
Read our full report on Nordson here, it’s free.
Best Q4: Lincoln Electric (NASDAQ:LECO)
Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.02 billion, down 3.4% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $200.31.
Is now the time to buy Lincoln Electric? Access our full analysis of the earnings results here, it’s free.
Hyster-Yale Materials Handling (NYSE:HY)
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, exceeding analysts’ expectations by 4.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
As expected, the stock is down 14.3% since the results and currently trades at $44.42.
Read our full analysis of Hyster-Yale Materials Handling’s results here.
Kennametal (NYSE:KMT)
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Kennametal reported revenues of $482.1 million, down 2.7% year on year. This number missed analysts’ expectations by 1%. It was a disappointing quarter as it also produced full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.
The stock is down 8.5% since reporting and currently trades at $21.45.
Read our full, actionable report on Kennametal here, it’s free.
Snap-on (NYSE:SNA)
Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Snap-on reported revenues of $1.30 billion, flat year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it produced a miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA estimates.
The stock is down 5.7% since reporting and currently trades at $336.56.
Read our full, actionable report on Snap-on here, it’s free.
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