CLEVELAND - Hyster-Yale Materials Handling, Inc. (NYSE: NYSE:HY) has reported a significant increase in its first-quarter earnings and revenue, surpassing analyst expectations.
The company announced an adjusted EPS of $2.93 for the first quarter of 2024, which is $1.20 higher than the consensus estimate of $1.73. Revenue for the quarter reached $1.06 billion, exceeding the $1.03 billion analyst forecast.
The company's consolidated operating profit saw a remarkable 97% increase to $83.8 million, up from the first quarter of 2023. The operating profit margin also improved, rising from 4.3% to 7.9% YoY.
This growth is attributed to higher average lift truck sales prices and a favorable sales mix, despite a decrease in unit and parts volumes. The Americas region, in particular, experienced a 12% revenue increase, contributing significantly to the overall performance.
Net income for the quarter was reported at $51.5 million, a 94% increase from the same period last year. The lift truck business was a strong contributor, with an operating profit up 87% YoY and an operating profit margin improvement of 390 basis points to 8.9%.
Despite the positive financial results, Hyster-Yale's stock experienced a marginal decline of 0.1% following the earnings release, indicating a relatively stable market response. This slight movement suggests that investors had anticipated the strong results or that other market factors were at play.
The company's CEO commented on the results, stating, "Our disciplined execution and focus on booking orders with strong margins have contributed to our robust first-quarter performance. We are pleased with the progress and are optimistic about our growth trajectory for the rest of the year."
Looking ahead, Hyster-Yale expects continued revenue and operating profit growth in the second quarter compared to the previous year. The company also anticipates full-year 2024 results to improve beyond initial expectations, factoring in the better-than-expected first-quarter performance and projected improvements in subsequent quarters.
Hyster-Yale's strategic initiatives, including the transformation of its sales processes and the enhancement of product capabilities, are expected to support long-term growth and a competitive advantage in the material handling market. With a strong start to 2024, the company remains committed to reducing leverage, improving cash flows, and delivering value to shareholders.
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