Nyse Order Imbalance 77904.0 Shares On Sell Side

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial distributors stocks fared in Q3, starting with Core & Main .

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 24 industrial distributors stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6.7% on average since the latest earnings results.

Core & Main

Formerly a division of industrial distributor HD Supply, Core & Main is a provider of water, wastewater, and fire protection products and services.

Core & Main reported revenues of $2.06 billion, up 1.2% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

“I want to thank our teams across the country for their disciplined execution, which continues to advance our strategic priorities and strengthen our position as the partner of choice for our customers,” said Mark Witkowski, CEO of Core & Main.

Interestingly, the stock is up 14.6% since reporting and currently trades at $57.88.

Best Q3: Hudson Technologies

Founded in 1991, Hudson Technologies specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $74.01 million, up 19.5% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 14% since reporting. It currently trades at $7.42.

Weakest Q3: Alta

Founded in 1984, Alta Equipment Group is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $422.6 million, down 5.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

Alta delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 7.4% since the results and currently trades at $6.31.

Read our full analysis of Alta’s results here.

DXP

Founded during the emergence of Big Oil in Texas, DXP provides pumps, valves, and other industrial components.

DXP reported revenues of $513.7 million, up 8.6% year on year. This result surpassed analysts’ expectations by 3%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is down 1.1% since reporting and currently trades at $120.70.

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

SiteOne

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

SiteOne reported revenues of $1.26 billion, up 4.1% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.

The stock is up 21.6% since reporting and currently trades at $149.82.

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