Looking back on gas and liquid handling stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including SPX Technologies (NYSE: SPXC) 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 satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% below.
In light of this news, share prices of the companies have held steady as they are up 3% on average since the latest earnings results.
Best Q3: SPX Technologies (NYSE: SPXC)
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
SPX Technologies reported revenues of $592.8 million, up 22.6% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.
SPX Technologies delivered the weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $200.06.
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 $1.17 billion, up 3.6% year on year, falling short of analysts’ expectations by 2.7%. However, the business still had a very strong quarter with an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 31.8% since reporting. It currently trades at $69.38.
Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $543.4 million, up 4.7% year on year, falling short of analysts’ expectations by 3%. It was a softer quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates.
The stock is flat since the results and currently trades at $81.97.
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 $5.08 billion, up 3.7% year on year. This number topped analysts’ expectations by 2.9%. It was a very strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ organic revenue estimates.
The stock is up 13.7% since reporting and currently trades at $880.30.
Read our full, actionable report on Parker-Hannifin here, it’s free for active Edge members.
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 $1.10 billion, up 3.6% year on year. This print lagged analysts' expectations by 6.3%. It was a slower quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Chart had the weakest performance against analyst estimates among its peers. The stock is up 3.3% since reporting and currently trades at $206.23.
Read our full, actionable report on Chart here, it’s free for active Edge members.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
