Internet of Things Q3 Earnings: AMETEK (NYSE:AME) is the Best in the Biz

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the internet of things stocks, including AMETEK (NYSE:AME) and its peers.

Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.

The 6 internet of things stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% 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.

Best Q3: AMETEK (NYSE:AME)

Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

AMETEK reported revenues of $1.89 billion, up 10.8% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ organic revenue estimates.

"AMETEK delivered impressive results in the third quarter, highlighted by double digit growth in sales, orders and earnings per share, along with an outstanding 90 basis points of margin expansion excluding the impact of recent acquisitions," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer.

Interestingly, the stock is up 6.9% since reporting and currently trades at $196.91.

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

Rockwell Automation (NYSE:ROK)

One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.

Rockwell Automation reported revenues of $2.32 billion, up 13.8% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.

Rockwell Automation scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.5% since reporting. It currently trades at $375.48.

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

Weakest Q3: Emerson Electric (NYSE:EMR)

Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.

Emerson Electric reported revenues of $4.86 billion, up 5.1% year on year, falling short of analysts’ expectations by 0.9%. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.

Emerson Electric delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.6% since the results and currently trades at $130.14.

Read our full analysis of Emerson Electric’s results here.

Trimble (NASDAQ:TRMB)

Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.

Trimble reported revenues of $901.2 million, up 2.9% year on year. This result beat analysts’ expectations by 3.5%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Trimble had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $79.33.

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

Vontier (NYSE:VNT)

A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.

Vontier reported revenues of $752.5 million, flat year on year. This print surpassed analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but EPS guidance for next quarter missing analysts’ expectations.

Vontier delivered the highest full-year guidance raise among its peers. The stock is down 11.3% since reporting and currently trades at $37.96.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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