Q2 Earnings Highlights: Parker-Hannifin (NYSE:PH) Vs The Rest Of The Gas and Liquid Handling Stocks
Looking back on gas and liquid handling stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Parker-Hannifin (NYSE:PH) 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 12 gas and liquid handling stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and gas and liquid handling stocks have had a rough stretch. On average, share prices are down 5.2% since the latest earnings results.
Parker-Hannifin (NYSE:PH)
Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Parker-Hannifin reported revenues of $5.19 billion, up 1.8% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ earnings estimates.
“We delivered an exceptionally strong fourth quarter capping another year of record performance,” said Chairman and Chief Executive Officer, Jenny Parmentier.
Interestingly, the stock is up 12% since reporting and currently trades at $575.35.
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 exceptional quarter for the company 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. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2% since reporting. It currently trades at $49.88.
Is now the time to buy Flowserve? 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 weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 3.6% since the results and currently trades at $39.15.
Read our full analysis of Gorman-Rupp’s results here.
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%. Revenue aside, 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 1.6% since reporting and currently trades at $139.22.
Read our full, actionable report on ITT here, it’s free.
Helios (NYSE:HLIO)
Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Helios reported revenues of $219.9 million, down 3.4% year on year, surpassing analysts’ expectations by 1.9%. Taking a step back, it was a solid quarter for the company with an impressive beat of analysts’ operating margin estimates.
Helios had the weakest full-year guidance update among its peers. The stock is up 1% since reporting and currently trades at $41.97.
Read our full, actionable report on Helios here, it’s free.
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