Q4 Earnings Outperformers: Hyster-Yale Materials Handling (NYSE:HY) And The Rest Of The Professional Tools and Equipment Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at professional tools and equipment stocks, 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 slower Q4. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.9% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.1% 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 $923.2 million, down 13.5% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Unsurprisingly, the stock is down 13% since reporting and currently trades at $33.43.

Read our full report on Hyster-Yale Materials Handling here, it’s free.

Best Q4: 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 $529.5 million, up 9.8% year on year, outperforming analysts’ expectations by 1%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Kennametal delivered the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.9% since reporting. It currently trades at $37.15.

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

Slowest Q4: Middleby (NASDAQ:MIDD)

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

Middleby reported revenues of $866.4 million, down 14.5% year on year, falling short of analysts’ expectations by 11.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Middleby delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.4% since the results and currently trades at $150.80.

Read our full analysis of Middleby’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 $1.12 billion, up 4.6% year on year. This result surpassed analysts’ expectations by 2.7%. It was an exceptional quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.

Fortive achieved the biggest analyst estimates beat among its peers. The stock is up 5.6% since reporting and currently trades at $57.39.

Read our full, actionable report on Fortive 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 $1.34 billion, up 3.1% year on year. This print topped analysts’ expectations by 1%. More broadly, it was a mixed quarter as it also produced a narrow beat of analysts’ revenue estimates but a slight miss of analysts’ EBITDA estimates.

The stock is down 2.8% since reporting and currently trades at $372.10.

Read our full, actionable report on Snap-on here, it’s free.

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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