Unpacking Q1 Earnings: Mayville Engineering (NYSE:MEC) In The Context Of Other Engineered Components and Systems Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the engineered components and systems industry, including Mayville Engineering (NYSE:MEC) 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, but engineered components and systems stocks have shown resilience, with share prices up 9.9% on average since the previous earnings results.
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 $161.3 million, up 13.1% year on year, in line with analysts' expectations. Overall, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming EBITDA guidance for the full year.
“We demonstrated solid execution on our strategic priorities during the first quarter, culminating in a strong start to the year for our business,” stated Jag Reddy, President and Chief Executive Officer.
The stock is up 36.7% since reporting and currently trades at $18.70.
Is now the time to buy Mayville Engineering? Access our full analysis of the earnings results 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 22% since reporting. It currently trades at $31.75.
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.
Interestingly, the stock is up 10.7% since the results and currently trades at $170.04.
Read our full analysis of Enpro's results here.
Arrow Electronics (NYSE:ARW)
Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.
Arrow Electronics reported revenues of $6.92 billion, down 20.7% year on year, falling short of analysts' expectations by 1.7%. More broadly, it was a weak quarter for the company with a miss of analysts' Components revenue estimates.
Arrow Electronics had the slowest revenue growth among its peers. The stock is up 1.9% since reporting and currently trades at $127.27.
Read our full, actionable report on Arrow Electronics here, it's free.
Applied Industrial (NYSE:AIT)
Formerly called The Ohio Ball Bearing Company, Applied Industrial Technologies (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.
Applied Industrial reported revenues of $1.15 billion, up 1.3% year on year, surpassing analysts' expectations by 1.3%. More broadly, it was an ok quarter for the company with a narrow beat of analysts' organic revenue estimates but a miss of analysts' earnings estimates.
The stock is up 12.3% since reporting and currently trades at $208.81.
Read our full, actionable report on Applied Industrial here, it's free.
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.