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IDEX (IEX) Beats on Q1 Earnings, Projects 2022 Growth Y/Y
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IDEX Corporation (IEX - Free Report) reported impressive first-quarter 2022 results. IEX’s earnings surpassed the Zacks Consensus Estimate by 12.6%, whereas sales surpassed the same by 4.14%.
In the reported quarter, IDEX’s adjusted earnings were $1.96 per share, beating the Zacks Consensus Estimate of $1.74. On a year-over-year basis, the bottom line increased 21% from the year-ago quarter’s figure of $1.62. Healthy segmental results favorably impacted the quarter’s earnings.
Earnings for the first quarter surpassed management’s projection of $1.73-$1.76.
Revenue Details
In the quarter under review, IDEX’s net sales were $751.1 million, reflecting year-over-year growth of 15.2%. Organic sales in the quarter increased 12% year over year, higher than 5-8% growth expected by IEX. Acquired assets boosted sales 5%. Foreign-currency translation left a negative impact of 2%.
IDEX’s top line surpassed the Zacks Consensus Estimate of $721 million.
IEX reports net sales under three business segments, results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $272.0 million, increasing 12% year over year. Organic sales were up 11% and synergies from acquired assets added 2%. Foreign-currency translation left a negative impact of 1%.
Revenues from Health & Science Technologies totaled $315.2 million, reflecting year-over-year growth of 26%. Organic sales in the quarter increased 16% year over year, while acquisitions/divestitures boosted sales 11%. Foreign currency translation left a negative impact of 1%.
Revenues from Fire & Safety/Diversified Products totaled $164.7 million, rising 3% year over year. The results were aided by a 5% increase in organic sales but suffered 2% forex woes.
IDEX Corporation Price, Consensus and EPS Surprise
In the quarter under review, IDEX’s cost of sales increased 13.7% year over year to $408.6 million. The adjusted gross profit was $342.5 million, up 16.8% year over year, while the adjusted gross margin increased 60 basis points (bps) to 45.6%.
Selling, general and administrative expenses increased 14.4% year over year to $154.3 million. The same represented 20.5% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 18.8% year over year to $214.7 million. Also, the adjusted EBITDA margin increased 90 bps year over year to 28.6%.
The adjusted operating income was $187.6 million, up 18.4% year over year, whereas the margin was 25.0%, up 70 bps. Interest expenses in the quarter dropped 11.2% year over year to $9.5 million.
Balance Sheet and Cash Flow
Exiting the first quarter, IDEX’s cash and cash equivalents decreased 14.3% sequentially to $733.2 million. Long-term debt was $1,190.6 million, almost similar to the figure at the previous-quarter end.
In the first three months of 2022, IDEX generated net cash of $79.7 million from operating activities, decreasing 27.1% from the year-ago quarter’s level. Capital used for purchasing property, plant and equipment was $16.1 million compared with $14.6 million in first-quarter 2021. Free cash flow was $63.6 million, down 32.8% year over year.
IEX paid out dividends totaling $41.4 million and repurchased common stocks worth $26.3.
Amount spent on acquisitions, net of acquired cash, totaled $114.7 million. On Mar 13, 2022, IDEX inked a deal to buy KZValve, valued at $120 million of cash. The transaction is expected to be complete in second-quarter 2022.
Outlook
For second-quarter 2022, IDEX anticipates adjusted earnings of $1.85-$1.90 per share and 8-9% growth in organic sales from the year-ago period’s reading.
For 2022, IDEX anticipates adjusted earnings of $7.50-$7.63 per share. Organic sales are predicted to grow 6-8%.
The accretive acquisition impact on revenues will likely be 6% for the second quarter and 4% for the current year. The tax rate for the second quarter as well as for the whole year is expected to be 22.5%.
Zacks Rank & Stocks to Consider
With a market capitalization of $14.6 billion, IEX currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies from the industrial products sector are discussed below.
In the past 60 days, earnings estimates for ROP earnings have increased 0.2% for 2022. The stock has increased 9.5% in the past three months.
Donaldson Company, Inc. (DCI - Free Report) presently carries a Zacks Rank of 2. DCI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
Earnings estimates for DCI have increased 0.7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have decreased 9.5% in the past three months.
Ferguson plc (FERG - Free Report) is presently Zacks #2 Ranked. FERG’s earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, the stock’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). The same has declined 20.5% in the past three months.
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IDEX (IEX) Beats on Q1 Earnings, Projects 2022 Growth Y/Y
IDEX Corporation (IEX - Free Report) reported impressive first-quarter 2022 results. IEX’s earnings surpassed the Zacks Consensus Estimate by 12.6%, whereas sales surpassed the same by 4.14%.
In the reported quarter, IDEX’s adjusted earnings were $1.96 per share, beating the Zacks Consensus Estimate of $1.74. On a year-over-year basis, the bottom line increased 21% from the year-ago quarter’s figure of $1.62. Healthy segmental results favorably impacted the quarter’s earnings.
Earnings for the first quarter surpassed management’s projection of $1.73-$1.76.
Revenue Details
In the quarter under review, IDEX’s net sales were $751.1 million, reflecting year-over-year growth of 15.2%. Organic sales in the quarter increased 12% year over year, higher than 5-8% growth expected by IEX. Acquired assets boosted sales 5%. Foreign-currency translation left a negative impact of 2%.
IDEX’s top line surpassed the Zacks Consensus Estimate of $721 million.
IEX reports net sales under three business segments, results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $272.0 million, increasing 12% year over year. Organic sales were up 11% and synergies from acquired assets added 2%. Foreign-currency translation left a negative impact of 1%.
Revenues from Health & Science Technologies totaled $315.2 million, reflecting year-over-year growth of 26%. Organic sales in the quarter increased 16% year over year, while acquisitions/divestitures boosted sales 11%. Foreign currency translation left a negative impact of 1%.
Revenues from Fire & Safety/Diversified Products totaled $164.7 million, rising 3% year over year. The results were aided by a 5% increase in organic sales but suffered 2% forex woes.
IDEX Corporation Price, Consensus and EPS Surprise
IDEX Corporation price-consensus-eps-surprise-chart | IDEX Corporation Quote
Margin Profile
In the quarter under review, IDEX’s cost of sales increased 13.7% year over year to $408.6 million. The adjusted gross profit was $342.5 million, up 16.8% year over year, while the adjusted gross margin increased 60 basis points (bps) to 45.6%.
Selling, general and administrative expenses increased 14.4% year over year to $154.3 million. The same represented 20.5% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 18.8% year over year to $214.7 million. Also, the adjusted EBITDA margin increased 90 bps year over year to 28.6%.
The adjusted operating income was $187.6 million, up 18.4% year over year, whereas the margin was 25.0%, up 70 bps. Interest expenses in the quarter dropped 11.2% year over year to $9.5 million.
Balance Sheet and Cash Flow
Exiting the first quarter, IDEX’s cash and cash equivalents decreased 14.3% sequentially to $733.2 million. Long-term debt was $1,190.6 million, almost similar to the figure at the previous-quarter end.
In the first three months of 2022, IDEX generated net cash of $79.7 million from operating activities, decreasing 27.1% from the year-ago quarter’s level. Capital used for purchasing property, plant and equipment was $16.1 million compared with $14.6 million in first-quarter 2021. Free cash flow was $63.6 million, down 32.8% year over year.
IEX paid out dividends totaling $41.4 million and repurchased common stocks worth $26.3.
Amount spent on acquisitions, net of acquired cash, totaled $114.7 million. On Mar 13, 2022, IDEX inked a deal to buy KZValve, valued at $120 million of cash. The transaction is expected to be complete in second-quarter 2022.
Outlook
For second-quarter 2022, IDEX anticipates adjusted earnings of $1.85-$1.90 per share and 8-9% growth in organic sales from the year-ago period’s reading.
For 2022, IDEX anticipates adjusted earnings of $7.50-$7.63 per share. Organic sales are predicted to grow 6-8%.
The accretive acquisition impact on revenues will likely be 6% for the second quarter and 4% for the current year. The tax rate for the second quarter as well as for the whole year is expected to be 22.5%.
Zacks Rank & Stocks to Consider
With a market capitalization of $14.6 billion, IEX currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies from the industrial products sector are discussed below.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2.03%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, earnings estimates for ROP earnings have increased 0.2% for 2022. The stock has increased 9.5% in the past three months.
Donaldson Company, Inc. (DCI - Free Report) presently carries a Zacks Rank of 2. DCI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
Earnings estimates for DCI have increased 0.7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have decreased 9.5% in the past three months.
Ferguson plc (FERG - Free Report) is presently Zacks #2 Ranked. FERG’s earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, the stock’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). The same has declined 20.5% in the past three months.