Q1 Earnings Outperformers: NN (NASDAQ:NNBR) And The Rest Of The Engineered Components and Systems Stocks
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the engineered components and systems industry, including NN (NASDAQ:NNBR) 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 11 engineered components and systems stocks we track reported a slower Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and engineered components and systems stocks have held roughly steady amidst all this, with share prices up 2.1% on average since the previous earnings results.
NN (NASDAQ:NNBR)
Formerly known as Nuturn, NN (NASDAQGS:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
NN reported revenues of $121.2 million, down 4.6% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
“In the first quarter, we continued to execute our strategic transformation, which yielded continued improvement in base business profitability and additive new business wins,” said Harold Bevis, President and Chief Executive Officer.
The stock is down 10% since reporting and currently trades at $3.42.
Read our full report on NN here, it's free.
Best Q1: Graham Corporation (NYSE:GHM)
Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Graham Corporation reported revenues of $49.07 million, up 14% year on year, outperforming analysts' expectations by 10.3%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Graham Corporation delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.8% since reporting. It currently trades at $29.88.
Is now the time to buy Graham Corporation? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $257.5 million, down 8.9% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is flat since the results and currently trades at $154.90.
Read our full analysis of Enpro'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 $249.1 million, up 8.7% year on year, in line with analysts' expectations. More broadly, it was an ok quarter for the company with a decent beat of analysts' earnings estimates.
The stock is up 5% since reporting and currently trades at $117.
Read our full, actionable report on ESCO here, it's free.
Worthington (NYSE:WOR)
Founded by a steel salesman, Worthington Enterprises (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Worthington reported revenues of $318.8 million, down 13.6% year on year, falling short of analysts' expectations by 9.6%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Building Products revenue estimates.
Worthington had the weakest performance against analyst estimates among its peers. The stock is down 4.5% since reporting and currently trades at $47.85.
Read our full, actionable report on Worthington here, it's free.
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