As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gas and liquid handling industry, including Standex (NYSE:SXI) and its peers.
Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling 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 13 gas and liquid handling stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.2%.
In light of this news, share prices of the companies have held steady as they are up 5% on average since the latest earnings results.
Standex (NYSE:SXI)
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Standex reported revenues of $170.5 million, down 7.7% year on year. This print fell short of analysts’ expectations by 4.7%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "Following record profit and cash generation in fiscal year 2024, we delivered another solid operational performance in the fiscal first quarter with record gross margin. Sales from fast growth markets in electric vehicles, defense applications, and commercialization of space improved year-on-year, respectively, but were offset primarily by demand conditions affecting the soft trim business in our Engraving segment. In the fiscal first quarter, we achieved record gross margin of 41.1% and maintained adjusted operating margin near 16.0%, while continuing to support our growth initiatives. We remain optimistic about leading market indicators across most of our businesses."
Interestingly, the stock is up 2.4% since reporting and currently trades at $184.16.
Read our full report on Standex here, it’s free.
Best Q3: IDEX (NYSE:IEX)
Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
IDEX reported revenues of $798.2 million, flat year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.
The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $208.79.
Is now the time to buy IDEX? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Graco (NYSE:GGG)
Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Graco reported revenues of $519.2 million, down 3.8% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ Contractor revenue estimates.
The stock is flat since the results and currently trades at $82.29.
Read our full analysis of Graco’s results here.
ITT (NYSE:ITT)
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries
ITT reported revenues of $885.2 million, up 7.7% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but organic revenue in line with analysts’ estimates.
The stock is down 1.1% since reporting and currently trades at $142.94.
Read our full, actionable report on ITT here, it’s free.
Gorman-Rupp (NYSE:GRC)
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Gorman-Rupp reported revenues of $168.2 million, flat year on year. This print missed analysts’ expectations by 2.5%. It was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
The stock is down 2.1% since reporting and currently trades at $37.20.
Read our full, actionable report on Gorman-Rupp 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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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