Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Hyster-Yale Materials Handling (NYSE:HY) and the best and worst performers in the professional tools and equipment industry.

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 10 professional tools and equipment stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.9% below.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

In light of this news, professional tools and equipment stocks have held steady with share prices up 4.9% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 3.5%. Overall, 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 of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 8.4% since reporting and currently trades at $63.73.

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

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. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 13.5% since reporting. It currently trades at $109.50.

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

Slowest Q2: Hillman (NASDAQ:HLMN)

Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.

Hillman reported revenues of $379.4 million, flat year on year, falling short of analysts’ expectations by 1.5%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.

Hillman delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 16.9% since the results and currently trades at $10.60.

Read our full analysis of Hillman’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 $1.55 billion, up 1.7% year on year. This number was in line with analysts’ expectations. However, it was an incredible quarter as it logged revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue estimates.

The stock is up 3.3% since reporting and currently trades at $79.20.

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

Lincoln Electric (NASDAQ:LECO)

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

Lincoln Electric reported revenues of $1.02 billion, down 3.7% year on year. This number was in line with analysts’ expectations. Aside from that, it was an mixed quarter as it also logged a narrow beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.

The stock is down 9.4% since reporting and currently trades at $191.68.

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

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