Let’s dig into the relative performance of Ingersoll Rand (NYSE:IR) and its peers as we unravel the now-completed Q2 gas and liquid handling earnings season.
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%.
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. This year has been a different story as mixed inflation signals have led to market volatility, and gas and liquid handling stocks have had a rough stretch. On average, share prices are down 6% since the latest earnings results.
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 print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
“Our results demonstrate that Ingersoll Rand continues to expand into durable, high-growth, sustainable end markets,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand.
The stock is down 10.4% since reporting and currently trades at $89.99.
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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 scored 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 9.2% since reporting. It currently trades at $46.21.
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 8.6% since the results and currently trades at $37.12.
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 result was in line with analysts’ expectations. Taking a step back, it was a softer quarter as its performance in other areas of the business was disappointing.
The stock is down 7.1% since reporting and currently trades at $167.42.
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 result surpassed analysts’ expectations by 2.2%. It was an exceptional quarter as it also put up an impressive beat of analysts’ organic revenue estimates.
SPX Technologies delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 4.3% since reporting and currently trades at $149.30.
This content was originally published on Stock Story
