Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gas and liquid handling stocks, including ITT (NYSE:ITT) 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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and gas and liquid handling stocks have had a rough stretch. On average, share prices are down 7.9% since the latest earnings results.

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 $905.9 million, up 8.6% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ organic revenue estimates but underwhelming earnings guidance for the full year.

This quarter we have also taken a significant step in reshaping the ITT portfolio, shifting towards attractive defense and aerospace interconnect markets while reducing our automotive exposure.” said ITT’s Chief Executive Officer and President Luca Savi.

Unsurprisingly, the stock is down 7.3% since reporting and currently trades at $131.12.

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

Best Q2: Flowserve (NYSE:FLS)

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.