As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gas and liquid handling industry, 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 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 10.6% on average 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 $4.96 billion, down 2.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
“Our third quarter performance demonstrates the strength of our business and our global team’s ability to continue to deliver record results,” said Jenny Parmentier, Chairman and Chief Executive Officer.
The stock is up 11.1% since reporting and currently trades at $671.
Read our full report on Parker-Hannifin 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 delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23.1% since reporting. It currently trades at $33.39.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.72 billion, up 2.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 8.4% since the results and currently trades at $82.60.
Read our full analysis of Ingersoll Rand’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 $814.3 million, up 1.7% year on year. This result beat analysts’ expectations by 1.1%. It was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 5.5% since reporting and currently trades at $183.23.
Read our full, actionable report on IDEX here, it’s free.
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 $163.9 million, up 2.9% year on year. This number lagged analysts' expectations by 0.5%. More broadly, it was actually a satisfactory quarter as it produced an impressive beat of analysts’ EBITDA estimates.
The stock is up 11.5% since reporting and currently trades at $37.16.
Read our full, actionable report on Gorman-Rupp here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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