Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 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 8.7% 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 $222 million, up 23.2% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with a very strong performance in the fourth quarter. Adjusted operating margin expanded 350 basis points year-on-year to a record 20.6% and adjusted earnings per share grew more than 20% to a record $2.28. These results reflect the continued evolution of our portfolio, accelerated by the acquisition of the Amran/Narayan Group in October 2024, and continued solid operational performance from core businesses. We paid down approximately $27 million of debt in the fiscal fourth quarter, and our net leverage ratio was reduced to 2.6x."
Standex scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 22.7% since reporting and currently trades at $202.47.
Is now the time to buy Standex? 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 a solid 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 43.9% since reporting. It currently trades at $53.01.
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 3.5% since the results and currently trades at $84.11.
Read our full analysis of Graco’s results here.
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 number topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and a narrow beat of analysts’ constant currency revenue estimates.
The stock is up 5.6% since reporting and currently trades at $79.93.
Read our full, actionable report on Donaldson 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 $179 million, up 5.6% year on year. This result surpassed analysts’ expectations by 2.5%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is up 19.4% since reporting and currently trades at $45.21.
Read our full, actionable report on Gorman-Rupp here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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