Dj Ibd: Stocks To Watch: John Bean Technologies Sees Relative Strength Rating Rise To 84

Energous Corporation WATT incurred a loss of 50 cents per share in third-quarter 2024. The company had reported a loss of 83 cents per share in the year-ago quarter.

Energous reported net revenues of $230 thousand. The top line increased 36.1% year over year, driven by higher commercial Power Bridge transmitter system shipments. As of Nov. 8, 2024, the company had $0.2 million in backlog.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

WATT’s Segmental Discussion

WATT reports its revenues under a single segment named Wireless Charging System Solutions. Revenues from the segment consist of revenues from product development projects and production-level systems.

Energous’ Margin Profile

WATT’s cost of sales increased more than 100% year over year to $306 thousand. The net loss decreased 29.5% to $3.6 million.

General and administrative expenses decreased 39.9% year over year to $1 million. Research and development expenses declined 30.9% to $1.7 million.

Energous Corporation Price, Consensus and EPS Surprise

Energous Corporation price-consensus-eps-surprise-chart | Energous Corporation Quote

WATT’s Balance Sheet

While exiting the third quarter, the company had cash and cash equivalents of $1.5 million compared with $13.9 million reported at the end of fourth-quarter 2023. Accounts payable were $1.5 million, lower than $1.9 billion reported at the end of the year-ago quarter.

WATT’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

Zacks Investment Research

Plug Power Inc. PLUG is scheduled to release third-quarter 2024 results on Nov. 12, before market open.

The company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters. The negative earnings surprise was 48.1%, on average.

Let’s see how things have shaped up for Plug Power this earnings season.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Note Ahead of PLUG’s Results

Weak demand for the company’s GenDrive units, electrolyzers and hydrogen infrastructure is expected to have hurt revenues from the sales of equipment, related infrastructure and others. Also, lower sales of cryogenic storage equipment and liquefiers and fuel cell systems are expected to have been spoilsport. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is $145 million, flat with the prior-year quarter.

However, revenues from fuel delivered to customers and related equipment are expected to have grown due to an increase in the number of sites with fuel contracts. The Zacks Consensus Estimate for fuel delivered to customers and related equipment net revenues is pegged at $20.9 million, implying a 7.7% increase from the year-ago number.

Revenues from Power Purchase Agreements (PPA) are expected to have been buoyed by an increase in the average number of units and customer sites party to these agreements.

Plug Power’s third-quarter results are also expected to benefit from the acquisitions of Applied Cryo Technologies and Frames Group, which strengthened its green hydrogen ecosystem and enhanced its capabilities to deliver a range of turnkey electrolyzer solutions.

It’s worth noting that escalating costs of sales and operating expenses have been concerns for Plug Power for some time now. The impacts of high labor and raw material costs are likely to have affected its margin and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.

Owing to its extensive regional presence, risks arising from unfavorable movements in foreign currencies and geopolitical issues are likely to have hurt Plug Power’s performance.

Amid this backdrop, the Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $208 million, indicating a decrease of 4.5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at a loss of 24 cents per share compared with a loss of 47 cents per share in the year-ago quarter.

Plug Power, Inc. Price and EPS Surprise

Plug Power, Inc. price-eps-surprise | Plug Power, Inc. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for PLUG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: PLUG has an Earnings ESP of -3.69% as the Most Accurate Estimate is pegged at a loss of 25 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 24 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: PLUG presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

Zacks Investment Research

Axon Enterprise, Inc. AXON reported third-quarter 2024 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.22. The bottom line increased 18.9% year over year despite a significant rise in the cost of sales.

Total revenues of $544.3 million surpassed the consensus estimate of $527 million and increased 31.7% year over year. The top line benefited from strong demand for TASER and body camera products. Growth in TASER and Sensors revenues, with increased adoption of premium software offerings, augmented the top-line results.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

AXON’s Segmental Details

Software & Sensors: Within this segment, Cloud and Services revenues rose 36% to $203 million. The uptick was driven by new customer adoption of Axon Evidence and continued expansion with the company’s existing customers. Cloud & Services’ adjusted gross margin increased year over year to 75.2% from 73.7% due to a higher software mix revenues relative to professional services.

Sensors & Other revenues climbed 18% to $120 million, driven by increased demand for Axon Body cameras. The gross margin declined to 38.9% from 52.9% in the year-ago period due to manufacturing overhead reallocations made in the year-ago quarter and inventory reserve charges associated with legacy products.

TASER: The segment’s revenues jumped 36% year over year to $222 million, driven by growth in demand for TASER 10 and associated cartridges and services. The adjusted gross margin increased year over year to 63% from 62.8% driven by investments in automation and cost reduction initiatives.

Axon Enterprise, Inc Price, Consensus and EPS Surprise

Axon Enterprise, Inc price-consensus-eps-surprise-chart | Axon Enterprise, Inc Quote

AXON’s Margin Profile

Axon Enterprise’s cost of sales increased 36.6% year over year to $213.5 million. Selling, general and administrative expenses increased 57.1% year over year to $192.2 million.

Total operating expenses climbed 53.9% year over year to $306.7 million. The gross margin deteriorated to 60.8% from 62.1% in the year-ago period.

AXON’s Balance Sheet & Cash Flow

At the end of the third quarter, Axon Enterprise had cash and cash equivalents of $695.1 million compared with $598.5 million in December 2023-end. Long-term lease liabilities totaled $41.7 million compared with $33.6 million in 2023-end.

In the first nine months of 2024, the company generated net cash of $158.1 million from operating activities against $49.2 million cash spent in the year-ago period.

Adjusted free cash flow was $117.5 million in the first nine months of the year against $27.2 million cash outflow in the prior-year period.

AXON’s Outlook

For 2024, Axon Enterprise expects revenues to be approximately $2.07 billion compared with $2.00-$2.05 billion guided earlier. The metric indicates approximately 32% year-over-year growth. Adjusted EBITDA is expected to be approximately $510 million, implying an adjusted EBITDA margin of 24.6%. This represents growth from its previous guided range of $460-$475 million.

The company expects capital expenditures to be between $80 million and $95 million. This includes investments in TASER 10 automation and capacity expansion. It anticipates stock-based compensation expenses to be in the range of $360-$380 million.

AXON’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation JBT recorded adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

Zacks Investment Research

Kennametal Inc. KMT reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of 29 cents per share, which beat the Zacks Consensus Estimate of 25 cents. The bottom line decreased 29.3% from the year-ago figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

KMT’s Revenue Details

Kennametal’s revenues were $481.9 million, which decreased 2% from the year-ago quarter’s figure. Organic sales declined 2% year over year. Business days had a positive impact of 1%. Currency exchange negatively affected sales by 1%.

KMT’s revenues beat the Zacks Consensus Estimate of $581 million.

On a geographical basis, revenues from American operations decreased 2% year over year to $237.7 million, whereas sales from Europe, the Middle East and Africa region were $145.9 million, down 1% from the year-ago quarter’s reading. Sales from the Asia Pacific belt increased 2% to $98.3 million.

Kennametal reports results under two business segments, namely Metal Cutting and Infrastructure. Its segmental performance for the fiscal first quarter is briefly discussed below:

The Metal Cutting segment’s revenues of $297 million decreased 4% year over year. Organic revenues declined 4%. Forex woes had an unfavorable impact of 2%, while business days had a positive impact of 2%. The Zacks Consensus Estimate for Metal Cutting’s revenues was pegged at $301 million.

The Infrastructure segment’s revenues totaled $185 million, up 0.4% year over year. Organic revenues increased 1%, while business days had a negative impact of 1% year over year. The consensus estimate for Infrastructure’s revenues was pegged at $180 million.

Kennametal Inc. Price, Consensus and EPS Surprise

Kennametal Inc. price-consensus-eps-surprise-chart | Kennametal Inc. Quote

KMT’s Margin Profile

Kennametal’s cost of goods sold increased 0.4% year over year to $330.9 million. The gross profit decreased 7% year over year to $151 million, while the margin decreased 180 basis points (bps) to 31.3%. Operating expenses were $112 million, flat year over year.

The operating income decreased 25% year over year to $37 million. Operating margin decreased 130 bps year over year to 7.6%. Lower sales and production volumes within the Metal Cutting segment, higher wages and general inflation and certain manufacturing costs within the Infrastructure segment ailed the results.

Interest expenses were $6.3 million, down 12% from the year-ago quarter’s figure. The adjusted effective tax rate was 4.4%.

Kennametal’s Balance Sheet and Cash Flow

While exiting the fiscal first quarter, Kennametal’s cash and cash equivalents were $119.6 million compared with $128 million in fourth-quarter fiscal 2024. Long-term debt was $596.2 million compared with the $596 million in the year-ago quarter.

In the first three months of fiscal 2025, Kennametal generated net cash of $45.7 million in operating activities compared with $25.7 million in the previous fiscal year’s quarter. Capital invested in purchasing property, plant and equipment (net of the amount received on disposals) was $24.7 million, down 22.2% from $31.8 million in the prior fiscal year. Free operating cash flow was $21.1 million against $3 million cash out flow in the previous fiscal year’s period.

KMT paid a dividend of $15.6 million and repurchased shares worth $15 million.

KMT’s Dividend Update

Kennametal announced that its board of directors approved a quarterly cash dividend of 20 cents per share to its shareholders of record as of Nov. 12, 2024. The disbursement will be made on Nov. 26.

Kennametal’s Guidance

For fiscal 2025 (ending June 2025), the company anticipates sales to be in the range of $2.0-$2.1 billion. Adjusted earnings per share are anticipated to be in the range of $1.30-$1.70. Free operating cash flow is expected to be more than 125% of net income (adjusted).

Capital spending is expected to be approximately $110 million.

KMT’s Zacks Rank

The company currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

Zacks Investment Research

iRobot Corporation IRBT reported third-quarter 2024 adjusted loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 5 cents per share. The reported figure compares favorably with the year-ago quarter’s net loss of $2.82 per share.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

IRBT’s Revenue Details

iRobot generated revenues of $193.4 million, which missed the Zacks Consensus Estimate of $218 million. On a year-over-year basis, revenues increased 3.9% due to an increase in sales of two-in-one products.

Sales derived from premium and mid-tier robots accounted for 79% of IRBT’s total robot revenues, lower than 80% in the year-ago quarter.

Total product units of 732 thousand were shipped, reflecting a year-over-year increase of 16.8%, while average selling prices declined 5.4%.

For solo and other products, revenues of $83 million reflected a decline of 34.1% year over year. Units shipped were 287 thousand, down 35.7% year over year.

Revenues from two-in-one products increased 83.3% year over year to $110 million. Units shipped were 445 thousand, up from 181 thousand in the year-ago quarter.

On a regional basis, iRobot sourced 54.4% of revenues from domestic operations, while the rest came from the international arena. Domestic revenues totaled $105.1 million, reflecting a 22.6% increase on a year-over-year basis. International revenues decreased 12.1% year over year to $88.3 million.

iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote

IRBT’s Margin Profile

The cost of revenues decreased 5.2% year over year to $131.1 million. Adjusted gross profit was $62.8 million, up 27% year over year, while the adjusted gross margin increased 590 basis points to 32.4%.

Research and development expenses were $19.6 million, down 47.4% year over year. Selling and marketing expenses declined 29.6% on a year-over-year basis to $29.3 million.

IRBT recorded an adjusted operating income of $15.1 million against $40.6 million loss in the year-ago period. The adjusted operating margin was 7.8 % against (21.8%) in the year-ago quarter.

IRBT’s Balance Sheet and Cash Flow

While exiting the third quarter, iRobot had cash and cash equivalents of $99.4 million compared with $185.1 million at the end of fourth-quarter 2023. Total long-term liabilities were $227.1 million compared with $250.1 million at fourth-quarter 2023-end.

In the first nine months of 2024, the company used net cash of $30.5 million from operating activities compared with $113.6 million in the prior-year period. Capital used for purchasing property and equipment declined 96.2% on a year-over-year basis to $118 million.

IRBT’s Outlook

For the fourth quarter, the company expects net sales to be in the range of $175–$200 million.

The adjusted gross margin is estimated to be in the band of 24–27%. Management projects adjusted loss per share to be in the band of $1.2-$1.5 per share.

For 2024, management forecasts net sales to be in the range of $685–$710 million compared with $765-$800 million predicted earlier.

The adjusted gross margin is envisioned to be in the band of 25-26%. Management projects adjusted loss per share to be in the band of $4.91–$4.60 compared with a loss of $3.31–$3.77 per share expected earlier.

IRBT’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

Zacks Investment Research