Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Park-Ohio (NASDAQ: PKOH) and its peers.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% since the latest earnings results.

Weakest Q3: 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 $398.6 million, down 4.5% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

Unsurprisingly, the stock is down 4.5% since reporting and currently trades at $20.12.

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

Best Q3: Timken (NYSE: TKR)

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE: TKR) is a provider of industrial parts used across various sectors.

Timken reported revenues of $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $79.69.

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

NN (NASDAQ: NNBR)

Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

NN reported revenues of $103.9 million, down 8.5% year on year, falling short of analysts’ expectations by 7.1%. It was a softer quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.

NN delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 31.5% since the results and currently trades at $1.30.

Read our full analysis of NN’s results here.

Regal Rexnord (NYSE: RRX)

Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.

Regal Rexnord reported revenues of $1.50 billion, up 1.3% year on year. This print met analysts’ expectations. However, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations and a miss of analysts’ adjusted operating income estimates.

The stock is down 5% since reporting and currently trades at $143.17.

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

Worthington (NYSE: WOR)

Founded by a steel salesman, Worthington (NYSE: WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Worthington reported revenues of $303.7 million, up 18% year on year. This result topped analysts’ expectations by 1.4%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EBITDA estimates.

The stock is down 9.9% since reporting and currently trades at $54.30.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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