The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how SPX Technologies (NYSE: SPXC) and the rest of the gas and liquid handling stocks fared in Q2.
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 2.8% below.
Luckily, gas and liquid handling stocks have performed well with share prices up 11.4% on average since the latest earnings results.
SPX Technologies (NYSE: SPXC)
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
SPX Technologies reported revenues of $552.4 million, up 10.2% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
SPX Technologies delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 5.8% since reporting and currently trades at $192.82.
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 pulled off 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 43.3% since reporting. It currently trades at $52.77.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 1.9% since the results and currently trades at $85.51.
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 beat analysts’ expectations by 2.6%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is up 9.6% since reporting and currently trades at $763.23.
Read our full, actionable report on Parker-Hannifin here, it’s free for active Edge members.
Ingersoll Rand (NYSE: IR)
Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Ingersoll Rand reported revenues of $1.89 billion, up 4.6% year on year. This print topped analysts’ expectations by 2.4%. It was a very strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
The stock is flat since reporting and currently trades at $83.95.
Read our full, actionable report on Ingersoll Rand here, it’s free for active Edge members.
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.
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