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As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the engineered components and systems industry, including Enpro and its peers.

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 13 engineered components and systems stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% since the latest earnings results.

Enpro

Holding a Guinness World Record for creating the world's largest gasket, Enpro designs, manufactures, and sells products used for machinery in various industries.

Enpro reported revenues of $286.6 million, up 9.9% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

“Enpro delivered another strong quarter with sales growth of almost 10% and solid profitability even as we continue growth investments in capabilities and strategic initiatives that lay the foundation for future value creation," said Eric Vaillancourt, President and Chief Executive Officer.

Unsurprisingly, the stock is down 6.6% since reporting and currently trades at $218.42.

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

Best Q3: Timken

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken is a provider of industrial parts used across various sectors.

Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $79.69.

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

Weakest Q3: Park-Ohio

Based in Cleveland, Park-Ohio provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $398.6 million, down 4.5% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 4.5% since the results and currently trades at $20.12.

Read our full analysis of Park-Ohio’s results here.

Gates Industrial Corporation

Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates offers power transmission and fluid transfer equipment for various industries.

Gates Industrial Corporation reported revenues of $855.7 million, up 3% year on year. This result met analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.

The stock is down 14.3% since reporting and currently trades at $22.12.

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

Applied Industrial

Formerly called The Ohio Ball Bearing Company, Applied Industrial distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.

Applied Industrial reported revenues of $1.2 billion, up 9.2% year on year. This number surpassed analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also logged a decent beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is down 4.2% since reporting and currently trades at $249.08.

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

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Applied Industrial and the rest of the engineered components and systems stocks fared in Q3.

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 13 engineered components and systems stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.6% since the latest earnings results.

Applied Industrial

Formerly called The Ohio Ball Bearing Company, Applied Industrial distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.

Applied Industrial reported revenues of $1.2 billion, up 9.2% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EBITDA estimates.

Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We had a solid first quarter, delivering double-digit EBITDA and EPS growth that exceeded our expectations. Total sales increased 9% year over year on stronger organic sales growth and M&A contribution. Organic growth was led by our shorter-cycle Service Center segment reflecting traction with internal initiatives, firming technical MRO demand, and our industry position. Engineered Solutions segment organic sales were relatively unchanged from the prior year but remain favorably positioned with segment orders continuing to trend positive. In addition, favorable operating leverage, cost control, and channel execution resulted in first quarter EBITDA margins of 12.2% expanding nearly 50 basis points over the prior-year period, which was ahead of our guidance. Overall, I’m encouraged by our teams’ ongoing execution and the positive momentum building across Applied.”

Unsurprisingly, the stock is down 4.2% since reporting and currently trades at $248.99.

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

Best Q3: Timken

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken is a provider of industrial parts used across various sectors.

Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $77.39.

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

Weakest Q3: Park-Ohio

Based in Cleveland, Park-Ohio provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $398.6 million, down 4.5% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 6.3% since the results and currently trades at $19.74.

Read our full analysis of Park-Ohio’s results here.

Mayville Engineering

Originally founded solely on tool and die manufacturing, Mayville Engineering Company specializes in metal fabrication, tube bending, and welding to be used in various industries.

Mayville Engineering reported revenues of $144.3 million, up 6.6% year on year. This print surpassed analysts’ expectations by 2.8%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 13.5% since reporting and currently trades at $15.60.

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

ESCO

A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO is a provider of engineered components for the aerospace, defense, and utility sectors.

ESCO reported revenues of $352.7 million, up 18.1% year on year. This result topped analysts’ expectations by 15.1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year EPS guidance exceeding analysts’ expectations.

ESCO scored the biggest analyst estimates beat among its peers. The stock is up 3.5% since reporting and currently trades at $217.50.

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

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Graham Corporation and the rest of the engineered components and systems stocks fared in Q3.

Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems 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 12 engineered components and systems stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.8% since the latest earnings results.

Graham Corporation

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Graham Corporation reported revenues of $66.03 million, up 23.3% year on year. This print exceeded analysts’ expectations by 14.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “I am pleased with our performance through the first half of the fiscal year. Our team continues to execute well across all business lines, driving broad-based growth supported by a record $500.1 million backlog. Demand across our end markets remains healthy as our Defense and Space markets continue to experience robust activity, and the Energy & Process market remains resilient. These trends are underscored by approximately $14.8 million of new Space orders secured and a $25.5 million follow-on order for the MK48 Torpedo program during the quarter, reinforcing our position as a trusted partner on critical platforms.”

Graham Corporation pulled off the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update 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 10% since reporting and currently trades at $55.83.

Read why we think that Graham Corporation is one of the best engineered components and systems stocks, our full report is free.

Best Q3: Timken

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken is a provider of industrial parts used across various sectors.

Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.1% since reporting. It currently trades at $74.84.

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

Weakest Q3: Park-Ohio

Based in Cleveland, Park-Ohio provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $398.6 million, down 4.5% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 9.7% since the results and currently trades at $19.03.

Read our full analysis of Park-Ohio’s results here.

Mayville Engineering

Originally founded solely on tool and die manufacturing, Mayville Engineering Company specializes in metal fabrication, tube bending, and welding to be used in various industries.

Mayville Engineering reported revenues of $144.3 million, up 6.6% year on year. This result beat analysts’ expectations by 2.8%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS and adjusted operating income estimates.

The stock is down 16.9% since reporting and currently trades at $15.00.

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

Enpro

Holding a Guinness World Record for creating the world's largest gasket, Enpro designs, manufactures, and sells products used for machinery in various industries.

Enpro reported revenues of $286.6 million, up 9.9% year on year. This print topped analysts’ expectations by 3.6%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is down 10.3% since reporting and currently trades at $209.72.

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