Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Donaldson (NYSE: DCI) 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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.

Donaldson (NYSE: DCI)

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 $896.3 million, up 3% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

“This quarter, the Donaldson team delivered record sales, strengthened the foundation to meet strong customer demand in key, high-margin businesses and made further progress on our footprint optimization initiatives, despite near-term challenges,” said Tod Carpenter, chairman, president and chief executive officer.

Unsurprisingly, the stock is down 18.2% since reporting and currently trades at $85.46.

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

Best Q4: 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 $446.6 million, up 9.8% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.8% since reporting. It currently trades at $57.25.

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

Weakest Q4: Chart (NYSE: GTLS)

Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.

Chart reported revenues of $1.08 billion, down 2.5% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Chart delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $206.94.

Read our full analysis of Chart’s results here.

Ingersoll Rand (NYSE: IR)

Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Ingersoll Rand reported revenues of $2.09 billion, up 10.1% year on year. This result surpassed analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The stock is down 10.9% since reporting and currently trades at $83.92.

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

SPX Technologies (NYSE: SPXC)

With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.

SPX Technologies reported revenues of $637.3 million, up 19.4% year on year. This number beat analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations.

SPX Technologies achieved the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 16.3% since reporting and currently trades at $203.43.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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