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Why Is Idex (IEX) Down 1.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Idex (IEX - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Idex due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
IDEX reported better-than-expected results for the first quarter of 2021. Its earnings surpassed estimates by 7.09% and sales beat the same by 2.47%.
The company’s adjusted earnings in the reported quarter were $1.51 per share, surpassing the consensus estimate of $1.41. Also, the bottom line grew 13.5% from the year-ago figure of $1.33 on the back of sales growth and an improvement in the operating margin.
Revenue Details
In the quarter under review, IDEX’s net sales were $652 million, reflecting year-over-year growth of 9.7%. The top line gained from contributions of 1% from acquired assets, 3% from foreign-currency translation and 6% from organic sales.
Also, the company’s revenues surpassed the Zacks Consensus Estimate of $636 million.
Orders in the quarter totaled $710.7 million, reflecting year-over-year growth of 10%. Organically, orders increased 6%, and acquired assets and foreign-currency translation positively impacted orders by 1% and 3%, respectively.
The company currently reports under three business segments, results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $243.4 million, increasing 7.3% year over year. Organic sales were up 2%, and acquisitions and foreign currency translation added 3% and 2%, respectively.
Revenues from Health & Science Technologies totaled $250.4 million, reflecting year-over-year growth of 11.7%. Organic sales in the quarter increased 9% year over year and foreign-currency translation left a positive impact of 3%.
Revenues from Fire & Safety/Diversified Products totaled $159.5 million, rising 10.5% year over year. The results were positively impacted by a 7% increase in organic sales and a 4% gain from foreign-currency translation.
Margin Profile
In the quarter under review, IDEX’s cost of sales increased 11.4% year over year to $359.4 million. Adjusted gross profit was $293.3 million, up 7.8% year over year, while adjusted gross margin decreased 70 bps to 45%.
Selling, general and administrative expenses increased 2.1% year over year to $134.9 million. It represented 20.7% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 14.2% year over year to $180.8 million. Also, adjusted EBITDA margin grew 110 bps year over year to 27.7%.
Adjusted operating income was $158.4 million, up 13.2% year over year, whereas margin was at 24.3%, up 80 bps. Interest expenses in the quarter dipped 0.9% year over year to $10.8 million.
Balance Sheet and Cash Flow
Exiting the first quarter, IDEX’s cash and cash equivalents decreased 6.6% sequentially to $958.1 million. Further, long-term debt of $1,044.6 million was flat on a sequential basis.
In the quarter, IDEX generated net cash of $109.3 million from operating activities, increasing 29% from the prior-year quarter. Capital used for purchasing property, plant and equipment was $14.6 million versus $12.8 million in the first quarter of 2020. Free cash flow was $94.7 million, up 31.6% year over year.
In the quarter, the company paid out dividends totaling $38.2 million and refrained from repurchasing any shares. Notably, it distributed $38.7 million as dividends and bought back shares worth $108.9 million in the year-ago quarter.
Also, the company used $106.2 million for acquiring businesses. This compares with $120.8 million spent in the year-ago quarter.
Outlook
IDEX anticipates improvements in end-market conditions and, thus, has raised its projections for 2021. It now anticipates organic revenue growth of 9-10% for the year as compared with an increase of 6-8% mentioned earlier. Organic sales in the second quarter are expected to grow 18-20%.
Earnings are predicted to be $1.60-$1.63 for the second quarter and $6.05-$6.20 for 2021. The year’s projection reflects improvement from $5.65-$5.95 mentioned earlier.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 9.93% due to these changes.
VGM Scores
Currently, Idex has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Idex has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Idex (IEX) Down 1.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Idex (IEX - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Idex due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
IDEX Beats Q1 Earnings Estimates, Raises 2021 View
IDEX reported better-than-expected results for the first quarter of 2021. Its earnings surpassed estimates by 7.09% and sales beat the same by 2.47%.
The company’s adjusted earnings in the reported quarter were $1.51 per share, surpassing the consensus estimate of $1.41. Also, the bottom line grew 13.5% from the year-ago figure of $1.33 on the back of sales growth and an improvement in the operating margin.
Revenue Details
In the quarter under review, IDEX’s net sales were $652 million, reflecting year-over-year growth of 9.7%. The top line gained from contributions of 1% from acquired assets, 3% from foreign-currency translation and 6% from organic sales.
Also, the company’s revenues surpassed the Zacks Consensus Estimate of $636 million.
Orders in the quarter totaled $710.7 million, reflecting year-over-year growth of 10%. Organically, orders increased 6%, and acquired assets and foreign-currency translation positively impacted orders by 1% and 3%, respectively.
The company currently reports under three business segments, results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $243.4 million, increasing 7.3% year over year. Organic sales were up 2%, and acquisitions and foreign currency translation added 3% and 2%, respectively.
Revenues from Health & Science Technologies totaled $250.4 million, reflecting year-over-year growth of 11.7%. Organic sales in the quarter increased 9% year over year and foreign-currency translation left a positive impact of 3%.
Revenues from Fire & Safety/Diversified Products totaled $159.5 million, rising 10.5% year over year. The results were positively impacted by a 7% increase in organic sales and a 4% gain from foreign-currency translation.
Margin Profile
In the quarter under review, IDEX’s cost of sales increased 11.4% year over year to $359.4 million. Adjusted gross profit was $293.3 million, up 7.8% year over year, while adjusted gross margin decreased 70 bps to 45%.
Selling, general and administrative expenses increased 2.1% year over year to $134.9 million. It represented 20.7% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 14.2% year over year to $180.8 million. Also, adjusted EBITDA margin grew 110 bps year over year to 27.7%.
Adjusted operating income was $158.4 million, up 13.2% year over year, whereas margin was at 24.3%, up 80 bps. Interest expenses in the quarter dipped 0.9% year over year to $10.8 million.
Balance Sheet and Cash Flow
Exiting the first quarter, IDEX’s cash and cash equivalents decreased 6.6% sequentially to $958.1 million. Further, long-term debt of $1,044.6 million was flat on a sequential basis.
In the quarter, IDEX generated net cash of $109.3 million from operating activities, increasing 29% from the prior-year quarter. Capital used for purchasing property, plant and equipment was $14.6 million versus $12.8 million in the first quarter of 2020. Free cash flow was $94.7 million, up 31.6% year over year.
In the quarter, the company paid out dividends totaling $38.2 million and refrained from repurchasing any shares. Notably, it distributed $38.7 million as dividends and bought back shares worth $108.9 million in the year-ago quarter.
Also, the company used $106.2 million for acquiring businesses. This compares with $120.8 million spent in the year-ago quarter.
Outlook
IDEX anticipates improvements in end-market conditions and, thus, has raised its projections for 2021. It now anticipates organic revenue growth of 9-10% for the year as compared with an increase of 6-8% mentioned earlier. Organic sales in the second quarter are expected to grow 18-20%.
Earnings are predicted to be $1.60-$1.63 for the second quarter and $6.05-$6.20 for 2021. The year’s projection reflects improvement from $5.65-$5.95 mentioned earlier.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 9.93% due to these changes.
VGM Scores
Currently, Idex has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Idex has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.