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 AMETEK (NYSE:AME) and the rest of the internet of things stocks fared in Q2.
Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.
The 6 internet of things stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.
AMETEK (NYSE:AME)
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
AMETEK reported revenues of $1.78 billion, up 2.5% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ revenue and EBITDA estimates.
"I was pleased with our results in the quarter as we delivered record sales and EBITDA, strong earnings growth, and excellent core margin expansion against the backdrop of a sluggish and uncertain economic environment," commented David A. Zapico, AMETEK Chairman and Chief Executive Officer.
Interestingly, the stock is up 5.2% since reporting and currently trades at $186.
Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Rockwell Automation (NYSE:ROK)
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Rockwell Automation reported revenues of $2.14 billion, up 4.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $350.50.
Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q2: SmartRent (NYSE:SMRT)
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $38.31 million, down 21% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
SmartRent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 49% since the results and currently trades at $1.46.
Read our full analysis of SmartRent’s results here.
Trimble (NASDAQ:TRMB)
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Trimble reported revenues of $875.7 million, flat year on year. This result surpassed analysts’ expectations by 4.9%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 4.4% since reporting and currently trades at $79.10.
Read our full, actionable report on Trimble here, it’s free for active Edge members.
Vontier (NYSE:VNT)
A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Vontier reported revenues of $773.5 million, up 11.1% year on year. This print topped analysts’ expectations by 5.4%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.
Vontier delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 6.3% since reporting and currently trades at $42.26.
Read our full, actionable report on Vontier here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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