Latest news with #Park-Ohio
Yahoo
30-05-2025
- Business
- Yahoo
Engineered Components and Systems Stocks Q1 Teardown: Timken (NYSE:TKR) Vs The Rest
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the engineered components and systems stocks, including Timken (NYSE:TKR) 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 12 engineered components and systems stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.2% while next quarter's revenue guidance was 1.1% below. Luckily, engineered components and systems stocks have performed well with share prices up 11.5% on average since the latest earnings results. 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. This print exceeded analysts' expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts' adjusted operating income estimates and full-year EPS guidance missing analysts' expectations. "Timken posted solid first-quarter results in a time of heightened uncertainty," said Richard G. Kyle, president and chief executive officer. The stock is up 6.8% since reporting and currently trades at $69.70. Read our full report on Timken 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 a solid beat of analysts' organic revenue and EBITDA estimates. The market seems happy with the results as the stock is up 24.7% since reporting. It currently trades at $137.35. Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it's free. 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, falling short of analysts' expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Park-Ohio delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.4% since the results and currently trades at $18.05. Read our full analysis of Park-Ohio's results here. 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 $265.5 million, up 6.6% year on year. This print met analysts' expectations. It was a very strong quarter as it also produced full-year EPS guidance exceeding analysts' expectations. ESCO pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 10.8% since reporting and currently trades at $181.17. Read our full, actionable report on ESCO here, it's free. 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 $135.6 million, down 15.9% year on year. This number topped analysts' expectations by 0.8%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Mayville Engineering had the slowest revenue growth among its peers. The stock is up 20.3% since reporting and currently trades at $15.93. Read our full, actionable report on Mayville Engineering here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. 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. 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
07-05-2025
- Business
- Yahoo
Park-Ohio (NASDAQ:PKOH) Reports Sales Below Analyst Estimates In Q1 Earnings
Diversified manufacturing and supply chain services provider Park-Ohio (NASDAQ:PKOH) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.9% year on year to $405.4 million. The company's full-year revenue guidance of $1.65 billion at the midpoint came in 1.5% below analysts' estimates. Its non-GAAP profit of $0.66 per share was 21% below analysts' consensus estimates. Is now the time to buy Park-Ohio? Find out in our full research report. Park-Ohio (PKOH) Q1 CY2025 Highlights: Revenue: $405.4 million vs analyst estimates of $425.5 million (2.9% year-on-year decline, 4.7% miss) Adjusted EPS: $0.66 vs analyst expectations of $0.84 (21% miss) Adjusted EBITDA: $33.9 million vs analyst estimates of $36.75 million (8.4% margin, 7.8% miss) Adjusted EPS guidance for the full year is $3.25 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 4.7%, down from 6.1% in the same quarter last year Free Cash Flow was -$19.5 million compared to -$7.1 million in the same quarter last year Market Capitalization: $289.7 million Company Overview Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Sales Growth A company's long-term sales performance is one signal of 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 struggled to consistently increase demand as its $1.64 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and is a sign of poor business quality. Park-Ohio Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Park-Ohio's annualized revenue growth of 2.7% over the last two years is above its five-year trend, but we were still disappointed by the results. Park-Ohio Year-On-Year Revenue Growth This quarter, Park-Ohio missed Wall Street's estimates and reported a rather uninspiring 2.9% year-on-year revenue decline, generating $405.4 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. 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.
Yahoo
05-05-2025
- Business
- Yahoo
Park-Ohio (PKOH) Reports Q1: Everything You Need To Know Ahead Of Earnings
Diversified manufacturing and supply chain services provider Park-Ohio (NASDAQ:PKOH) will be announcing earnings results tomorrow after the bell. Here's what to look for. Park-Ohio missed analysts' revenue expectations by 4.3% last quarter, reporting revenues of $388.4 million, flat year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts' EBITDA estimates. Is Park-Ohio a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Park-Ohio's revenue to grow 1.9% year on year to $425.5 million, a reversal from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Park-Ohio has missed Wall Street's revenue estimates four times over the last two years. Looking at Park-Ohio's peers in the engineered components and systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Arrow Electronics's revenues decreased 1.6% year on year, beating analysts' expectations by 7.2%, and Gates Industrial Corporation reported a revenue decline of 1.7%, topping estimates by 2.9%. Arrow Electronics traded up 3.6% following the results while Gates Industrial Corporation was also up 6.2%. Read our full analysis of Arrow Electronics's results here and Gates Industrial Corporation's results here. There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 12.9% on average over the last month. Park-Ohio is up 10.3% during the same time. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
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.
