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 Donaldson (NYSE:DCI) 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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Luckily, gas and liquid handling stocks have performed well with share prices up 16.5% on average since the latest earnings results.
Donaldson (NYSE:DCI)
Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE:DCI) manufacturers and sells filtration equipment for various industries.
Donaldson reported revenues of $940.1 million, up 1.3% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with full-year EPS guidance beating analysts’ expectations but a slight miss of analysts’ constant currency revenue estimates.
“I am proud of our third quarter earnings results which are a testament to the durability of our business model and the strength of the Donaldson team,” said Tod Carpenter, chairman, president and chief executive officer.
Donaldson delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 1.7% since reporting and currently trades at $70.44.
Is now the time to buy Donaldson? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $195.5 million, down 7.8% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.
Helios scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.5% since reporting. It currently trades at $36.20.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $4.96 billion, down 2.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
Interestingly, the stock is up 19.7% since the results and currently trades at $722.77.
Read our full analysis of Parker-Hannifin’s results here.
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 $1.00 billion, up 5.3% year on year. This result met analysts’ expectations. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Chart had the weakest full-year guidance update among its peers. The stock is up 27.4% since reporting and currently trades at $171.73.
Read our full, actionable report on Chart here, it’s free.
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 $207.8 million, up 17.2% year on year. This print beat analysts’ expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also produced a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
Standex pulled off the fastest revenue growth among its peers. The stock is up 8.3% since reporting and currently trades at $157.11.
Read our full, actionable report on Standex here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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