The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how professional tools and equipment stocks fared in Q3, starting with Hyster-Yale Materials Handling (NYSE: HY).

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 9 professional tools and equipment stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% 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 1.7% since the latest earnings results.

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 $979.1 million, down 3.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates.

Hyster-Yale Materials Handling delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 18.1% since reporting and currently trades at $28.36.

Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $498 million, up 3.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Kennametal pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 22.7% since reporting. It currently trades at $27.12.

Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free for active Edge members.

Stanley Black & Decker (NYSE: SWK)

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE: SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Stanley Black & Decker reported revenues of $3.76 billion, flat year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.

Stanley Black & Decker delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.7% since the results and currently trades at $67.46.

Read our full analysis of Stanley Black & Decker’s results here.

Fortive (NYSE: FTV)

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 $1.03 billion, up 2.3% year on year. This print topped analysts’ expectations by 1.8%. It was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 6.7% since reporting and currently trades at $52.47.

Read our full, actionable report on Fortive here, it’s free for active Edge members.

Middleby (NASDAQ: MIDD)

Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE: MIDD) is a food service and equipment manufacturer.

Middleby reported revenues of $982.1 million, up 4.2% year on year. This number beat analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 6.3% since reporting and currently trades at $115.71.

Read our full, actionable report on Middleby here, it’s free for active Edge members.

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.

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