Let’s dig into the relative performance of Emerson Electric (NYSE: EMR) and its peers as we unravel the now-completed Q1 internet of things earnings season.
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.
Luckily, internet of things stocks have performed well with share prices up 13.3% on average since the latest earnings results.
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 $4.43 billion, up 1.3% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with full-year EPS guidance slightly topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
"Emerson delivered strong underlying orders in the second quarter with margin expansion and adjusted earnings exceeding our expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai.
Emerson Electric achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 20.4% since reporting and currently trades at $129.18.
Is now the time to buy Emerson Electric? Access our full analysis of the earnings results here, it’s free.
Best Q1: Rockwell Automation (NYSE: ROK)
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.
The market seems happy with the results as the stock is up 27.3% since reporting. It currently trades at $321.80.
Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $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 1.7% since the results and currently trades at $0.92.
Read our full analysis of SmartRent’s results here.
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 $741.1 million, down 1.9% year on year. This result topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income and organic revenue estimates.
Vontier had the weakest full-year guidance update among its peers. The stock is up 12.4% since reporting and currently trades at $35.72.
Read our full, actionable report on Vontier here, it’s free.
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 number surpassed analysts’ expectations by 3.8%. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
Trimble scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 13.2% since reporting and currently trades at $71.70.
Read our full, actionable report on Trimble here, it’s free.
Market Update
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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