Looking back on professional tools and equipment stocks' Q2 earnings, we examine this quarter's best and worst performers, including Stanley Black & Decker (NYSE:SWK) 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 9 professional tools and equipment stocks we track reported an ok Q2; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was 0.9% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the professional tools and equipment stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.7% on average since the previous earnings results.

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.

Donald Allan, Jr., Stanley Black & Decker's President & CEO, commented, "We extended our trajectory of solid execution on our operational priorities, which drove gross margin improvement versus the prior year and strong cash generation in the second quarter. Strength in DEWALT, outdoor and aerospace fasteners combined to yield organic growth* amidst a weak consumer backdrop.

The stock is down 2.6% since reporting and currently trades at $94.01.

Is now the time to buy Stanley Black & Decker? 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 achieved the fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 13.1% since reporting. It currently trades at $60.50.

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 10.1% since the results and currently trades at $68.89.

Read our full analysis of Fortive'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 $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 delivered the highest full-year guidance raise among its peers. The stock is up 3.6% since reporting and currently trades at $24.85.

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

Lincoln Electric (NASDAQ:LECO)

Headquartered in Ohio, Lincoln Electric (NASDAQGS:LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $1.02 billion, down 3.7% year on year, in line with analysts' expectations. More broadly, it was a slower quarter for the company with a miss of analysts' organic revenue estimates.

The stock is down 10.7% since reporting and currently trades at $189.08.

Read our full, actionable report on Lincoln Electric here, it's free.

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