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 Enpro (NYSE: NPO) and the best and worst performers in the engineered components and systems industry.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.1% below.
Luckily, engineered components and systems stocks have performed well with share prices up 13% on average since the latest earnings results.
Enpro (NYSE: NPO)
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Enpro reported revenues of $273.2 million, up 6.1% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Enpro's strong first quarter performance again highlights the resilience of the Enpro portfolio and reflects continued excellent execution amidst a dynamic macroeconomic backdrop,” said Eric Vaillancourt, President and Chief Executive Officer.
Enpro delivered the weakest full-year guidance update of the whole group. The stock is up 17.4% since reporting and currently trades at $182.32.
Is now the time to buy Enpro? Access our full analysis of the earnings results here, it’s free.
Best Q1: Regal Rexnord (NYSE: RRX)
Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.
Regal Rexnord reported revenues of $1.42 billion, down 8.4% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.
The market seems happy with the results as the stock is up 26.7% since reporting. It currently trades at $139.57.
Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Park-Ohio (NASDAQ: PKOH)
Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.
Park-Ohio reported revenues of $405.4 million, down 2.9% year on year, falling short of analysts’ expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Park-Ohio delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.2% since the results and currently trades at $18.30.
Read our full analysis of Park-Ohio’s results here.
ESCO (NYSE: ESE)
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
ESCO reported revenues of $265.5 million, up 6.6% year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also produced full-year EPS and revenue guidance exceeding analysts’ expectations.
ESCO delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 11.7% since reporting and currently trades at $182.64.
Read our full, actionable report on ESCO here, it’s free.
Mayville Engineering (NYSE: MEC)
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Mayville Engineering reported revenues of $135.6 million, down 15.9% year on year. This print surpassed analysts’ expectations by 0.8%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Mayville Engineering had the slowest revenue growth among its peers. The stock is up 20.4% since reporting and currently trades at $15.94.
Read our full, actionable report on Mayville Engineering here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
