Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Ingersoll Rand (NYSE: IR) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 2.8% below.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average 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 $1.89 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
“We delivered another strong quarter, with momentum reflected in our first half organic orders growth, robust book-to-bill ratio, and raised guidance on revenue, Adjusted EBITDA, and Adjusted EPS,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand.
Unsurprisingly, the stock is down 8.2% since reporting and currently trades at $77.75.
Is now the time to buy Ingersoll Rand? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $212.5 million, down 3.4% year on year, outperforming analysts’ expectations by 5.5%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Helios scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 34.9% since reporting. It currently trades at $49.67.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Graco (NYSE: GGG)
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Graco reported revenues of $571.8 million, up 3.4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.
Graco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6% since the results and currently trades at $81.96.
Read our full analysis of Graco’s results here.
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 $5.24 billion, up 1.1% year on year. This result topped analysts’ expectations by 2.6%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is up 5.8% since reporting and currently trades at $736.48.
Read our full, actionable report on Parker-Hannifin here, it’s free for active Edge members.
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 $972.4 million, up 7.3% year on year. This number surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ organic revenue estimates.
The stock is up 7.9% since reporting and currently trades at $172.14.
Read our full, actionable report on ITT here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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