Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Graco (NYSE: GGG) and the best and worst performers in the gas and liquid handling industry.
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 9.1% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Overall sales were up 3% in the quarter despite an organic revenue decline of 3%, primarily due to lower sales in the Contractor segment," said Mark Sheahan, Graco's President and Chief Executive Officer.
Graco delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $84.44.
Read our full report on Graco 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 46.6% since reporting. It currently trades at $54.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
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 $865.4 million, up 7.2% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 13.5% since the results and currently trades at $160.55.
Read our full analysis of IDEX’s results here.
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 result came in 2.3% below analysts' expectations. Taking a step back, it was still a strong quarter as it produced an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 16% since reporting and currently trades at $199.20.
Read our full, actionable report on Chart here, it’s free.
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 $222 million, up 23.2% year on year. This number beat analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS and EBITDA estimates.
Standex pulled off the fastest revenue growth among its peers. The stock is up 23.7% since reporting and currently trades at $204.08.
Read our full, actionable report on Standex here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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