Looking back on gas and liquid handling stocks' Q2 earnings, we examine this quarter's best and worst performers, including Chart (NYSE:GTLS) 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 11 gas and liquid handling stocks we track reported a slower Q2; on average, revenues missed analyst consensus estimates by 0.9%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and gas and liquid handling stocks have had a rough stretch, with share prices down 5.6% on average since the previous earnings results.
Chart (NYSE:GTLS) Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses.
Chart reported revenues of $1.04 billion, up 14.6% year on year, falling short of analysts' expectations by 6.3%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
“With record sales growth of 18.8%, record gross margin of 33.8%, record reported operating income, record reported operating margin, record EBITDA, and associated EBITDA margin, w. are on the path to our reiterated three-year medium-term targets of mid-teen organic sales CAGR, reported gross margin in the mid-30%’s and our target net leverage ratio range of 2.0 to 2.5,” stated Jill Evanko, Chart’s CEO and President.
Chart delivered the weakest performance against analyst estimates of the whole group. The stock is down 26.7% since reporting and currently trades at $112.65.
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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 great quarter compared its peers, the market seems unhappy with the results as the stock is down 9.5% since reporting. It currently trades at $46.07.
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 8.8% since the results and currently trades at $37.05.
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%. Taking a step back, 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 5.4% since reporting and currently trades at $133.88.
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, in line with analysts' expectations. Zooming out, it was a weak quarter for the company with a miss of analysts' earnings and organic revenue estimates.
The stock is down 10.9% since reporting and currently trades at $89.47.
This content was originally published on Stock Story
