As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at engineered components and systems stocks, starting with RBC Bearings (NYSE: RBC).

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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% since the latest earnings results.

RBC Bearings (NYSE: RBC)

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

RBC Bearings reported revenues of $455.3 million, up 14.4% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ Aerospace and Defense revenue estimates but a miss of analysts’ Diversified Industrials revenue estimates.

Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, stated, “Our performance during the second quarter achieved a very high standard as demand from many of our core markets reached unprecedented levels. We were well prepared to support the generational expansion taking place in these aerospace and defense markets and are pleased to recognize the outstanding performance reached by our factories and offices. Clearly, we have entered a unique period in our business cycle and look forward to delivering a record year to our shareholders.”

Interestingly, the stock is up 6.3% since reporting and currently trades at $432.05.

Is now the time to buy RBC Bearings? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Timken (NYSE: TKR)

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 $1.16 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $76.29.

Is now the time to buy Timken? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Park-Ohio (NASDAQ: PKOH)

Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $398.6 million, down 4.5% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 3.3% since the results and currently trades at $20.39.

Read our full analysis of Park-Ohio’s results here.

Enpro (NYSE: NPO)

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Enpro reported revenues of $286.6 million, up 9.9% year on year. This print topped analysts’ expectations by 3.6%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is down 9.9% since reporting and currently trades at $210.70.

Read our full, actionable report on Enpro here, it’s free for active Edge members.

NN (NASDAQ: NNBR)

Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

NN reported revenues of $103.9 million, down 8.5% year on year. This result lagged analysts' expectations by 7.1%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ revenue and EBITDA estimates.

NN pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 14% since reporting and currently trades at $1.63.

Read our full, actionable report on NN here, it’s free for active Edge members.

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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