Gas and Liquid Handling Stocks Q2 Earnings: Flowserve (NYSE:FLS) Best of the Bunch
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Flowserve (NYSE:FLS) and the best and worst performers in the gas and liquid handling industry.
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%.
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 1.8% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.
Flowserve achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.1% since reporting and currently trades at $53.50.
Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with an impressive beat of analysts’ organic revenue and operating margin estimates.
SPX Technologies achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $161.73.
Is now the time to buy SPX Technologies? Access our full analysis of the earnings results here, it’s free.
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 2.1% since the results and currently trades at $39.79.
Read our full analysis of Gorman-Rupp’s results here.
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 result came in 2.5% below analysts' expectations. 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 up 2.2% since reporting and currently trades at $212.48.
Read our full, actionable report on IDEX here, it’s free.
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. This result came in 4% below analysts' expectations. It was a softer quarter as it also produced a miss of analysts’ revenue estimates.
The stock is down 6.5% since reporting and currently trades at $28.06.
Read our full, actionable report on CECO here, it’s free.
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