The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gas and liquid handling stocks fared in Q1, starting with Standex (NYSE:SXI).
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 5 gas and liquid handling stocks we track reported a very strong Q1; on average, revenues beat analyst consensus estimates by 2.8%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but gas and liquid handling stocks have shown resilience, with share prices up 7.9% on average since the previous earnings results.
Weakest Q1: 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 $177.3 million, down 3.8% year on year, falling short of analysts' expectations by 1.6%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "I am pleased with our third quarter operating performance despite continued softness in general market conditions impacting our top line. We again achieved solid adjusted gross margin of near 40%, which followed a record of 40.3% last quarter. Excluding the one-time charge related to stock compensation, adjusted operating margin would have been similar to our record second quarter performance. Three of our business segments finished the quarter with operating margin near or above 20%, while margin in the Engineering Technologies segment approached nearly 18%. As such, we remain confident in our continued margin performance towards our long-term target by fiscal year 2028 of greater than 19% operating margin. From a cash perspective, we generated record fiscal third quarter' free operating cash flow of $19.3 million, which represented 121% of GAAP net income. Year-to-date, we have generated record free operating cash flow of $50.8 million."
Standex delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is up 4% since reporting and currently trades at $184.67.
Is now the time to buy Standex? Find out by reading the original article on StockStory, it's free.
Best Q1: Flowserve (NYSE:FLS) Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE:FLS) manufactures and sells flow control equipment for various industries.
Flowserve reported revenues of $1.09 billion, up 10.9% year on year, outperforming analysts' expectations by 4.7%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Flowserve achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $51.19.
SPX Technologies (NYSE:SPXC) SPX Technologies (NYSE:SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.
SPX Technologies reported revenues of $465.2 million, up 16.4% year on year, exceeding analysts' expectations by 4.6%. It was still an impressive quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' organic revenue estimates.
Interestingly, the stock is up 24% since the results and currently trades at $151.54.
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 million, flat year on year, surpassing analysts' expectations by 3.2%. Zooming out, it was a stunning quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.
The stock is down 6.3% since reporting and currently trades at $45.32.
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 $910.6 million, up 14.1% year on year, surpassing analysts' expectations by 3.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 9.1% since reporting and currently trades at $141.07.
This content was originally published on Stock Story
