Latest news with #PKOH
Yahoo
6 days ago
- Business
- Yahoo
Park-Ohio (NASDAQ:PKOH) Misses Q2 Revenue Estimates
Diversified manufacturing and supply chain services provider Park-Ohio (NASDAQ:PKOH) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 7.5% year on year to $400.1 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $1.64 billion at the midpoint. Its non-GAAP profit of $0.75 per share was 4.9% above analysts' consensus estimates. Is now the time to buy Park-Ohio? Find out in our full research report. Park-Ohio (PKOH) Q2 CY2025 Highlights: Revenue: $400.1 million vs analyst estimates of $405.4 million (7.5% year-on-year decline, 1.3% miss) Adjusted EPS: $0.75 vs analyst estimates of $0.72 (4.9% beat) Adjusted EBITDA: $35.2 million vs analyst estimates of $33.9 million (8.8% margin, 3.8% beat) The company dropped its revenue guidance for the full year to $1.64 billion at the midpoint from $1.65 billion, a 0.9% decrease Management lowered its full-year Adjusted EPS guidance to $3.05 at the midpoint, a 6.2% decrease Operating Margin: 5%, down from 6.3% in the same quarter last year Free Cash Flow was -$20.9 million compared to -$10.6 million in the same quarter last year Market Capitalization: $216.8 million Company Overview Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Park-Ohio's 3.2% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector and is a poor baseline for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Park-Ohio's recent performance shows its demand has slowed as its revenue was flat over the last two years. This quarter, Park-Ohio missed Wall Street's estimates and reported a rather uninspiring 7.5% year-on-year revenue decline, generating $400.1 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Park-Ohio was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Park-Ohio's operating margin rose by 1.8 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Park-Ohio generated an operating margin profit margin of 5%, down 1.3 percentage points year on year. Since Park-Ohio's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Park-Ohio's EPS grew at an astounding 38.4% compounded annual growth rate over the last five years, higher than its 3.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Park-Ohio's earnings to better understand the drivers of its performance. As we mentioned earlier, Park-Ohio's operating margin declined this quarter but expanded by 1.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Park-Ohio, its two-year annual EPS growth of 26.1% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q2, Park-Ohio reported adjusted EPS at $0.75, down from $1.02 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 4.9%. Over the next 12 months, Wall Street expects Park-Ohio's full-year EPS of $3.15 to grow 5.9%. Key Takeaways from Park-Ohio's Q2 Results We enjoyed seeing Park-Ohio beat analysts' EBITDA expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue slightly missed. Overall, this was a weaker quarter. The stock remained flat at $15.99 immediately following the results. Big picture, is Park-Ohio a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
30-07-2025
- Business
- Yahoo
ParkOhio Announces Second Quarter 2025 Results Webcast
CLEVELAND, Ohio, July 30, 2025--(BUSINESS WIRE)--ParkOhio (NASDAQ: PKOH) announces the following webcast: What: ParkOhio (NASDAQ: PKOH) Second Quarter 2025 Results Conference Call When: Thursday, August 7, 2025, at 10:00 a.m. Eastern Time Where: How: Live over the Internet -- Simply log on to the link above. Contact: Matthew V. Crawford, Chairman, President, & Chief Executive Officer 440.947.2000 If you are unable to participate during the live webcast, the call will be archived at ParkOhio is a diversified international company providing world class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. Headquartered in Cleveland, Ohio, ParkOhio operates more than 130 manufacturing sites and supply chain logistics facilities, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. View source version on Contacts Matthew V. Crawford, Chairman, President, & Chief Executive OfficerPark-Ohio Holdings Corp.440.947.2000 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Engineered Components and Systems Stocks Q1 Results: Benchmarking Park-Ohio (NASDAQ:PKOH)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Park-Ohio (NASDAQ:PKOH) and the rest of the engineered components and systems stocks fared in Q1. 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 strong Q1. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was 1.4% below. Luckily, engineered components and systems stocks have performed well with share prices up 16.8% on average since the latest earnings results. Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Park-Ohio reported revenues of $405.4 million, down 2.9% year on year. This print fell short of analysts' expectations by 4.7%. Overall, it was a softer quarter for the company with a significant miss of analysts' EBITDA and EPS estimates. Park-Ohio delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 14.1% since reporting and currently trades at $18.33. Read our full report on Park-Ohio here, it's free. Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.42 billion, down 8.4% year on year, outperforming analysts' expectations by 3%. The business had a stunning quarter with an impressive beat of analysts' organic revenue and EBITDA estimates. The market seems happy with the results as the stock is up 37.9% since reporting. It currently trades at $151.89. Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it's free. 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 $1.14 billion, down 4.2% year on year, exceeding analysts' expectations by 1.1%. Still, it was a slower quarter as it posted a significant miss of analysts' adjusted operating income estimates and full-year EPS guidance missing analysts' expectations. Interestingly, the stock is up 19.6% since the results and currently trades at $78.07. Read our full analysis of Timken's results here. 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 $6.81 billion, down 1.6% year on year. This result beat analysts' expectations by 7.2%. It was an exceptional quarter as it also recorded a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Arrow Electronics pulled off the biggest analyst estimates beat among its peers. The stock is up 18.9% since reporting and currently trades at $132.16. Read our full, actionable report on Arrow Electronics here, it's free. 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 $273.2 million, up 6.1% year on year. This print surpassed analysts' expectations by 2.6%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts' EBITDA estimates but full-year revenue guidance missing analysts' expectations. Enpro had the weakest full-year guidance update among its peers. The stock is up 31.6% since reporting and currently trades at $204.36. Read our full, actionable report on Enpro here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
18-04-2025
- Business
- Yahoo
Park-Ohio (PKOH): Buy, Sell, or Hold Post Q4 Earnings?
Shareholders of Park-Ohio would probably like to forget the past six months even happened. The stock dropped 37.6% and now trades at $18.80. This might have investors contemplating their next move. Is there a buying opportunity in Park-Ohio, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even though the stock has become cheaper, we're cautious about Park-Ohio. Here are three reasons why you should be careful with PKOH and a stock we'd rather own. Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Park-Ohio struggled to consistently increase demand as its $1.66 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality. Gross profit margin is a critical metric to track because it sheds light on its pricing power, complexity of products, and ability to procure raw materials, equipment, and labor. Park-Ohio has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 15% gross margin over the last five years. Said differently, Park-Ohio had to pay a chunky $85.05 to its suppliers for every $100 in revenue. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Park-Ohio broke even from a free cash flow perspective over the last five years, giving the company limited opportunities to return capital to shareholders. We see the value of companies helping their customers, but in the case of Park-Ohio, we're out. After the recent drawdown, the stock trades at 5.1× forward price-to-earnings (or $18.80 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We'd recommend looking at one of our top software and edge computing picks. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
