Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 7 internet of things stocks we track reported a weak Q2. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 3.4% below.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some internet of things stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.

Best Q2: 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 $870.8 million, down 12.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.

"Strong execution across our business resulted in revenue and EPS above the midpoint of guidance. ARR reached a record $2.11 billion and gross margin also achieved a record level," said Rob Painter, Trimble's president and chief executive officer.

Trimble scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 8.4% since reporting and currently trades at $54.04.

Is now the time to buy Trimble? Access our full analysis of the earnings results here, it’s free.

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 $2.05 billion, down 8.4% year on year, in line with analysts’ expectations. It performed better than its peers, but it was unfortunately a mixed quarter for the company with a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.

The market seems content with the results as the stock is up 4.2% since reporting. It currently trades at $261.17.

Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $696.4 million, down 8.9% year on year, falling short of analysts’ expectations by 6.7%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.

Vontier had the weakest performance against analyst estimates in the group. As expected, the stock is down 13.9% since the results and currently trades at $33.80.

Read our full analysis of Vontier’s results here.

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 $1.73 billion, up 5.4% year on year, falling short of analysts’ expectations by 2.6%. Overall, it was a weak quarter for the company with a miss of analysts’ organic revenue estimates and underwhelming earnings guidance for the full year.

The stock is down 6.9% since reporting and currently trades at $161.48.

Read our full, actionable report on AMETEK here, it’s free.

Arlo (NYSE:ARLO)

With its name deriving from the Old English word meaning “to see,” Arlo (NYSE:ARLO) provides home security products and other accessories to protect homes and businesses.

Arlo reported revenues of $127.4 million, up 10.8% year on year, surpassing analysts’ expectations by 1.9%. Overall, it was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.

Arlo pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is down 9.7% since reporting and currently trades at $12.20.

Read our full, actionable report on Arlo here, it’s free.

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