Q4 Rundown: Enpro (NYSE:NPO) Vs Other Engineered Components and Systems Stocks
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 engineered components and systems stocks fared in Q4, starting with Enpro (NYSE:NPO).
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 Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.9% 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 $258.4 million, up 3.7% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
"Our strong finish to 2024 was driven by excellent performance in Sealing Technologies and sequential improvement in sales and segment profitability at AST," said Eric Vaillancourt, President and Chief Executive Officer.
The stock is down 30.3% since reporting and currently trades at $136.27.
Is now the time to buy Enpro? Access our full analysis of the earnings results here, it’s free .
Best Q4: 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 $247 million, up 13.2% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations.
ESCO pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $139.86.
Is now the time to buy ESCO? Access our full analysis of the earnings results here, it’s free .