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 Q2. Today, we are looking at professional tools and equipment stocks, starting with Middleby (NASDAQ:MIDD).

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.9% below.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

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 $991.5 million, down 4.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.

“We continue to make progress toward our longer-term financial goals, posting strong profitability and record operating cash flows in the quarter. Orders trended positively during the quarter, with increases at all three of our segments as compared to the prior year second quarter. Although general market conditions are challenged, we are positioned for growth in the second half as we continue to execute on our strategic initiatives. Our launches of new product innovations and investments in go-to-market strategies continue to strengthen our leadership position across our three foodservice businesses,” said Tim FitzGerald, CEO of The Middleby Corporation.

Middleby delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $136.35.

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

Best Q2: 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 $1.12 billion, up 2.5% year on year, outperforming analysts’ expectations by 3.5%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

Hyster-Yale Materials Handling delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.9% since reporting. It currently trades at $60.59.

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

Weakest Q2: 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 $1.55 billion, up 1.7% year on year, in line with analysts’ expectations. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue estimates.

As expected, the stock is down 9% since the results and currently trades at $69.79.

Read our full analysis of Fortive’s results here.

Stanley Black & Decker (NYSE:SWK)

Based in Connecticut, Stanley Black and Decker (NYSE:SWK)

Stanley Black & Decker reported revenues of $4.02 billion, down 3.2% year on year, in line with analysts’ expectations. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and a solid beat of analysts’ organic revenue estimates.

The stock is flat since reporting and currently trades at $97.

Read our full, actionable report on Stanley Black & Decker here, it’s free.

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 $543.3 million, down 1.3% year on year, surpassing analysts’ expectations by 2%. Taking a step back, it was a decent quarter for the company with optimistic earnings guidance for the next quarter but underwhelming earnings guidance for the full year.

Kennametal pulled off the highest full-year guidance raise among its peers. The stock is up 4.3% since reporting and currently trades at $25.

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

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