As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the internet of things industry, including Trimble (NASDAQ:TRMB) 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 6 internet of things stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results.
Trimble (NASDAQ:TRMB)
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Trimble reported revenues of $840.6 million, down 11.8% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
"We began the year with strong momentum, delivering a first quarter record annualized recurring revenue of $2.18 billion and surpassing expectations on both top and bottom lines," said Rob Painter, president and CEO of Trimble.
Trimble Total Revenue
Trimble pulled off the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 4.2% since reporting and currently trades at $66.01.
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Rockwell Automation reported revenues of $2.00 billion, down 5.9% year on year, outperforming analysts’ expectations by 1.1%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
Rockwell Automation Total Revenue
The market seems happy with the results as the stock is up 15.9% since reporting. It currently trades at $293.
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
SmartRent reported revenues of $41.34 million, down 18.1% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
SmartRent delivered the slowest revenue growth in the group. Interestingly, the stock is up 1.1% since the results and currently trades at $0.91.
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 $1.73 billion, flat year on year. This result came in 0.7% below analysts' expectations. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ organic revenue estimates.
AMETEK had the weakest performance against analyst estimates among its peers. The stock is up 2.6% since reporting and currently trades at $173.63.
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 $741.1 million, down 1.9% year on year. This number topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.
Vontier had the weakest full-year guidance update among its peers. The stock is up 9.8% since reporting and currently trades at $34.88.
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.
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