Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gas and liquid handling stocks, including ITT (NYSE:ITT) 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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and gas and liquid handling stocks have had a rough stretch. On average, share prices are down 7.9% since the latest earnings results.
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 $905.9 million, up 8.6% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.
This quarter we have also taken a significant step in reshaping the ITT portfolio, shifting towards attractive defense and aerospace interconnect markets while reducing our automotive exposure.” said ITT’s Chief Executive Officer and President Luca Savi.
Unsurprisingly, the stock is down 7.3% since reporting and currently trades at $131.12.
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Best Q2: 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 $1.16 billion, up 7.1% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.
Flowserve delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $45.39.
Weakest Q2: 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 $169.5 million, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 10.5% since the results and currently trades at $36.38.
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 $1.81 billion, up 7% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
The stock is down 12.3% since reporting and currently trades at $88.03.
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 $807.2 million, down 4.6% year on year. This print lagged analysts' expectations by 2.5%. Overall, it was a slower quarter as it also produced a miss of analysts’ organic revenue estimates.
IDEX had the slowest revenue growth among its peers. The stock is down 5% since reporting and currently trades at $197.55.
This content was originally published on Stock Story
