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 13 gas and liquid handling stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
In light of this news, gas and liquid handling stocks have held steady with share prices up 1.9% 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 $180.2 million, down 4.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with yet another solid operational performance in the fourth quarter, which demonstrates the resilient character of our employees to adapt and execute on initiatives under our control, despite continued softness in general market conditions."
Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $174.54.
Is now the time to buy Standex? Find out by reading the original article on StockStory, it’s free.
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. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $53.86.
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 6.4% since the results and currently trades at $38.01.
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 satisfactory quarter as it also recorded an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
The stock is down 1.8% since reporting and currently trades at $98.56.
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 $501.3 million, up 18.4% year on year. This number beat analysts’ expectations by 2.2%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ organic revenue and operating margin estimates.
SPX Technologies pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 14.6% since reporting and currently trades at $164.08.
This content was originally published on Stock Story
