Let’s dig into the relative performance of Donaldson (NYSE: DCI) and its peers as we unravel the now-completed Q2 gas and liquid handling earnings season.
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 12 gas and liquid handling stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 2.7% below.
Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results.
Donaldson (NYSE: DCI)
Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE: DCI) manufacturers and sells filtration equipment for various industries.
Donaldson reported revenues of $980.6 million, up 4.8% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and a narrow beat of analysts’ constant currency revenue estimates.
“Our fourth quarter earnings results, inclusive of robust sales and profitability, represent a strong finish to a record fiscal 2025,” said Tod Carpenter, chairman, president and chief executive officer.
Interestingly, the stock is up 5.9% since reporting and currently trades at $80.18.
Is now the time to buy Donaldson? Access our full analysis of the earnings results here, it’s free.
Best Q2: Helios (NYSE: HLIO)
Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Helios reported revenues of $212.5 million, down 3.4% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Helios delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 51.8% since reporting. It currently trades at $55.92.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $571.8 million, up 3.4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Graco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.7% since the results and currently trades at $84.80.
Read our full analysis of Graco’s results here.
Parker-Hannifin (NYSE: PH)
Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Parker-Hannifin reported revenues of $5.24 billion, up 1.1% year on year. This number surpassed analysts’ expectations by 2.6%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is up 9.9% since reporting and currently trades at $765.28.
Read our full, actionable report on Parker-Hannifin here, it’s free.
Chart (NYSE: GTLS)
Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.
Chart reported revenues of $1.08 billion, up 4% year on year. This print came in 2.3% below analysts' expectations. More broadly, it was actually a strong quarter as it put up an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 16.2% since reporting and currently trades at $199.41.
Read our full, actionable report on Chart here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
