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As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gas and liquid handling industry, including Helios (NYSE:HLIO) 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 4.4% on average since the latest earnings results.
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 $220.3 million, up 13.3% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.
“Our improved results in the third quarter are a testament to the Helios team's successful execution of our strategy to create a higher performing business. We had stronger-than-expected sales, continued to improve our margins, and demonstrated financial discipline by strengthening our balance sheet and reducing our cash conversion cycle. We will also have a more meaningful reduction in our debt to end 2025 having monetized our CFP asset,” said Sean Bagan, President and Chief Executive Officer of Helios.
Helios achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 8% since reporting and currently trades at $54.26.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $203.90.
Is now the time to buy SPX Technologies? Access our full analysis of the earnings results here, it’s free for active Edge members.
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.
Interestingly, the stock is up 1.8% since the results and currently trades at $83.09.
Read our full analysis of Graco’s results here.
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 $1.96 billion, up 5.1% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance missing analysts’ expectations.
The stock is up 2.4% since reporting and currently trades at $80.65.
Read our full, actionable report on Ingersoll Rand here, it’s free for active Edge members.
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Standex reported revenues of $217.4 million, up 27.6% year on year. This result surpassed analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.
Standex achieved the fastest revenue growth among its peers. The stock is down 7% since reporting and currently trades at $222.34.
Read our full, actionable report on Standex here, it’s free for active Edge members.
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.
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.
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