Wrapping up Q3 earnings, we look at the numbers and key takeaways for the internet of things stocks, including AMETEK (NYSE:AME) and its peers.
Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.
The 7 internet of things stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.9% below.
Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
AMETEK reported revenues of $1.71 billion, up 5.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but organic revenue in line with analysts’ estimates.
«AMETEK delivered excellent results in the third quarter with double digit orders growth, outstanding operating performance, excellent cash flow conversion, and earnings ahead of expectations,» stated David A. Zapico, AMETEK Chairman and Chief Executive Officer.
The stock is up 9.9% since reporting and currently trades at $185.71.
Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free.
A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Vontier reported revenues of $750 million, down 2% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and organic revenue estimates.
Vontier pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $39.07.
Is now the time to buy Vontier? Access our full analysis of the earnings results here, it’s free.
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