Gas and Liquid Handling Stocks Q2 Recap: Benchmarking Helios (NYSE:HLIO)

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at gas and liquid handling stocks, starting with Helios (NYSE:HLIO).

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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

In light of this news, gas and liquid handling stocks have held steady with share prices up 1.9% 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 $219.9 million, down 3.4% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ operating margin estimates but full-year revenue guidance missing analysts’ expectations.

“For the third consecutive quarter, the Helios team delivered financial results that met or slightly beat our guidance. The second quarter’s sequential top line growth, expanding margins, and disciplined working capital management validate that the adjustments we have made in the business are yielding positive outcomes.” said Sean Bagan, Interim President, Chief Executive Officer, and Chief Financial Officer of Helios.

Helios delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 13.5% since reporting and currently trades at $47.14.

Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.

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 $1.16 billion, up 7.1% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.

Flowserve achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $53.86.

Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free.

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 $169.5 million, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 6.4% since the results and currently trades at $38.01.

Read our full analysis of Gorman-Rupp’s results here.

Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries

ITT reported revenues of $905.9 million, up 8.6% year on year. This number lagged analysts' expectations by 1.1%. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.

The stock is up 5.3% since reporting and currently trades at $148.97.

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

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 $935.4 million, up 6.4% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ operating margin estimates but underwhelming earnings guidance for the full year.

The stock is down 2.1% since reporting and currently trades at $72.87.

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

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