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 IDEX (NYSE:IEX) 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 11 gas and liquid handling stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and gas and liquid handling stocks have had a rough stretch. On average, share prices are down 5.6% since the latest earnings results.
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 fell short of analysts’ expectations by 2.5%. Overall, it was a weak quarter for the company with a miss of analysts’ organic revenue estimates.
“IDEX teams delivered strong execution in the second quarter, expanding margins sequentially despite stronger uncertainty-fueled macro headwinds,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President.
IDEX delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7.1% since reporting and currently trades at $193.31.
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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%. It was an impressive quarter for the company with 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 8.4% since reporting. It currently trades at $46.62.
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 weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 7.1% since the results and currently trades at $37.76.
CECO (NASDAQ:CECO) Started in a Cincinnati garage, CECO (NASDAQ:CECO) is a global provider of industrial air quality and fluid handling systems.
CECO reported revenues of $137.5 million, up 6.5% year on year, falling short of analysts’ expectations by 4%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings and revenue estimates.
The stock is down 9.9% since reporting and currently trades at $27.05.
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, falling 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.
The stock is down 5.2% since reporting and currently trades at $134.11.
This content was originally published on Stock Story
