Why Albany (AIN) Stock Is Trading Up Today

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 general industrial machinery stocks fared in Q3, starting with Honeywell .

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Honeywell

Originally founded in 1906 as a thermostat company, Honeywell is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Honeywell reported revenues of $10.41 billion, up 7% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Vimal Kapur, chairman and chief executive officer of Honeywell, commented, "As we progressed toward separating into three industry-leading public companies, we drove strong financial results and unlocked new value creation opportunities during the third quarter. Increased orders across our business segments pushed the company's total backlog to another record high and reinforced the benefit of the new, innovative solutions we are delivering for customers. All of this translated to us exceeding the high end of our guidance for both organic growth and adjusted earnings per share in the quarter."

Honeywell delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.9% since reporting and currently trades at $192.44.

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

Best Q3: Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year, outperforming analysts’ expectations by 9.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $31.78.

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

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.9% since the results and currently trades at $48.63.

Read our full analysis of Albany’s results here.

Crane

Based in Connecticut, Crane is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Crane reported revenues of $589.2 million, up 7.5% year on year. This number beat analysts’ expectations by 1.6%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 1.9% since reporting and currently trades at $187.87.

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

3M

Producers of the first asthma inhaler, 3M Company is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.

3M reported revenues of $6.32 billion, flat year on year. This print topped analysts’ expectations by 1%. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 8.4% since reporting and currently trades at $169.15.

Read our full, actionable report on 3M here, it’s free for active Edge members.

Let’s dig into the relative performance of Stratasys and its peers as we unravel the now-completed Q3 industrial machinery earnings season.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 54 industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

While some industrial machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.2% since the latest earnings results.

Stratasys

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys offers 3D printers and related materials, software, and services to many industries.

Stratasys reported revenues of $137 million, down 2.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ Services revenue estimates.

"Our third quarter results demonstrate the resilience of our business model that enabled us to deliver solid operating cash flow and positive adjusted earnings per share, through the combination of strong recurring revenues, disciplined cost management and operational excellence," said Dr. Yoav Zeif, CEO of Stratasys.

Unsurprisingly, the stock is down 5.8% since reporting and currently trades at $8.98.

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

Best Q3: Icahn Enterprises

Founded in 1987, Icahn Enterprises is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $8.76.

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

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue and revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 17.2% since the results and currently trades at $45.18.

Read our full analysis of Albany’s results here.

GE Aerospace

One of the original 12 companies on the Dow Jones Industrial Average, General Electric is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

GE Aerospace reported revenues of $12.18 billion, up 36.2% year on year. This print beat analysts’ expectations by 11.7%. It was an exceptional quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is flat since reporting and currently trades at $305.49.

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

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 number topped analysts’ expectations by 2.8%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 11.1% since reporting and currently trades at $16.03.

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