Unpacking Q3 Earnings: Graco (NYSE:GGG) In The Context Of Other Gas and Liquid Handling Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the gas and liquid handling stocks, including Graco (NYSE:GGG) 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 13 gas and liquid handling stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 0.6% below.

Luckily, gas and liquid handling stocks have performed well with share prices up 14.1% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.

"Sales increased by 5% in the third quarter, with a strong 6% contribution from recent acquisitions. Organic revenue declined 2% reflecting ongoing softness in global construction markets, particularly in North America," said Mark Sheahan, Graco’s President and Chief Executive Officer.

Interestingly, the stock is up 7.1% since reporting and currently trades at $87.39.

Read our full report on Graco here, it’s free.

Best Q3: Atmus Filtration Technologies (NYSE:ATMU)

Spun out of Cummins in 2023 after 65 years as part of the engine maker, Atmus Filtration Technologies (NYSE:ATMU) manufactures filters for trucks, construction equipment, and agriculture machinery to reduce emissions and protect engines.

Atmus Filtration Technologies reported revenues of $447.7 million, up 10.9% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.

Atmus Filtration Technologies pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 22% since reporting. It currently trades at $56.73.

Is now the time to buy Atmus Filtration Technologies? Access our full analysis of the earnings results 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 $172.8 million, up 2.8% year on year, falling short of analysts’ expectations by 1%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Gorman-Rupp delivered the slowest revenue growth in the group. Interestingly, the stock is up 7.9% since the results and currently trades at $52.95.

Read our full analysis of Gorman-Rupp’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 print beat analysts’ expectations by 2.9%. It was a very strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ organic revenue estimates.

The stock is up 22% since reporting and currently trades at $944.18.

Read our full, actionable report on Parker-Hannifin 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 $217.4 million, up 27.6% year on year. This number topped analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also produced a narrow beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.

Standex scored the fastest revenue growth among its peers. The stock is up 4.6% since reporting and currently trades at $249.98.

Read our full, actionable report on Standex here, it’s free.

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