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 Emerson Electric (NYSE:EMR) and the rest of the internet of things stocks fared in Q3.
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q3: Emerson Electric (NYSE:EMR)
Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Emerson Electric reported revenues of $4.86 billion, up 5.1% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations significantly.
"Emerson delivered a solid fiscal 2025, marked by continued margin expansion, robust cash generation and strong execution. The dedication of our global teams was instrumental in driving our performance and advancing Emerson's position as the leading automation company," said Emerson President and Chief Executive Officer Lal Karsanbhai.
Emerson Electric delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 6.7% since reporting and currently trades at $128.53.
Read our full report on Emerson Electric here, it’s free for active Edge members.
Best Q3: AMETEK (NYSE:AME)
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 $1.89 billion, up 10.8% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $194.92.
Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free for active Edge members.
Vontier (NYSE:VNT)
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 $752.5 million, flat year on year, exceeding analysts’ expectations by 0.7%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.
Vontier delivered the weakest full-year guidance update in the group. As expected, the stock is down 18.3% since the results and currently trades at $34.93.
Read our full analysis of Vontier’s results here.
SmartRent (NYSE:SMRT)
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 $36.2 million, down 10.6% year on year. This result topped analysts’ expectations by 1.8%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
SmartRent had the slowest revenue growth among its peers. The stock is up 11.4% since reporting and currently trades at $1.52.
Read our full, actionable report on SmartRent here, it’s free for active Edge members.
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 $901.2 million, up 2.9% year on year. This number surpassed analysts’ expectations by 3.5%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Trimble pulled off the highest full-year guidance raise among its peers. The stock is down 1.9% since reporting and currently trades at $77.07.
Read our full, actionable report on Trimble here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.