Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the industry has underperformed the market over the past six months as its 7.2% return lagged the S&P 500 by 2.3 percentage points.
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 7.2% has trailed the S&P 500’s 9.5% gain.
Most consumer discretionary businesses succeed or fail based on the broader economy. This volatility leads to big swings in stock prices that have worked in their favor recently - over the past six months, the industry has returned 16.4% and beat the S&P 500 by 7 percentage points.
Higher education company Laureate Education (NASDAQ:LAUR) announced better-than-expected revenue in Q4 CY2024, with sales up 3.4% year on year to $423.4 million. On the other hand, the company’s full-year revenue guidance of $1.56 billion at the midpoint came in 3% below analysts’ estimates. Its GAAP profit of $0.62 per share was 47.6% above analysts’ consensus estimates.
Building materials company Builders FirstSource (NYSE:BLDR) fell short of the market’s revenue expectations in Q4 CY2024, with sales falling 8% year on year to $3.82 billion. The company’s full-year revenue guidance of $17 billion at the midpoint came in 1.7% below analysts’ estimates. Its non-GAAP profit of $2.31 per share was 4% above analysts’ consensus estimates.
E-commerce software platform provider BigCommerce (NASDAQ: BIGC) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 3.4% year on year to $87.03 million. On the other hand, next quarter’s revenue guidance of $82.2 million was less impressive, coming in 1.8% below analysts’ estimates. Its non-GAAP profit of $0.11 per share was 65.7% above analysts’ consensus estimates.
Fast-food chain Shake Shack (NYSE:SHAK) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 14.8% year on year to $328.7 million. Its non-GAAP profit of $0.26 per share was 11.4% above analysts’ consensus estimates.
Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) reported revenue ahead of Wall Street’s expectations in Q4 CY2024, with sales up 27% year on year to $210 million. On the other hand, next quarter’s revenue guidance of $169 million was less impressive, coming in 8.1% below analysts’ estimates. Its non-GAAP loss of $0.06 per share was significantly below analysts’ consensus estimates.
Online home goods retailer Wayfair (NYSE:W) reported Q4 CY2024 results beating Wall Street’s revenue expectations, but sales were flat year on year at $3.12 billion. Its non-GAAP loss of $0.25 per share was significantly below analysts’ consensus estimates.
Real estate services firm Cushman & Wakefield (NYSE:CWK) missed Wall Street’s revenue expectations in Q4 CY2024 as sales rose 3% year on year to $2.63 billion. Its non-GAAP profit of $0.48 per share was in line with analysts’ consensus estimates.
