Looking back on gas and liquid handling stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including CECO (NASDAQ:CECO) 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.2%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
CECO (NASDAQ:CECO)
Started in a Cincinnati garage, CECO (NASDAQ:CECO) is a global provider of industrial air quality and fluid handling systems.
CECO reported revenues of $135.5 million, down 9.3% year on year. This print fell short of analysts’ expectations by 13.1%. Overall, it was a disappointing quarter for the company with a miss of analysts’ revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.
Todd Gleason, CECO’s Chief Executive Officer commented, “While our third quarter produced very strong orders and a new record backlog, we were disappointed that we fell short of the anticipated quarterly revenue and income outlook as a handful of customer-driven delays in larger projects could not be overcome by continued progress with margin expansion and other actions. ”
CECO delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 15% since reporting and currently trades at $30.23.
Is now the time to buy CECO? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $798.2 million, flat year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with an impressive beat of analysts’ adjusted operating income estimates.
The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $209.29.
Is now the time to buy IDEX? Access our full analysis of the earnings results here, it’s free.
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 $519.2 million, down 3.8% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ Contractor revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 1.7% since the results and currently trades at $84.29.
Read our full analysis of Graco’s results here.
ITT (NYSE:ITT)
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 $885.2 million, up 7.7% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but organic revenue in line with analysts’ estimates.
The stock is down 1.1% since reporting and currently trades at $142.88.
Read our full, actionable report on ITT 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 $168.2 million, flat year on year. This print lagged analysts' expectations by 2.5%. It was a disappointing quarter as it also logged a significant miss of analysts’ EPS and EBITDA estimates.
The stock is flat since reporting and currently trades at $37.92.
Read our full, actionable report on Gorman-Rupp here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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