Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Standex (NYSE:SXI) 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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

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.

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 $180.2 million, down 4.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.

Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with yet another solid operational performance in the fourth quarter, which demonstrates the resilient character of our employees to adapt and execute on initiatives under our control, despite continued softness in general market conditions."

Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $174.54.

Read our full report on Standex 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.