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IDEX (IEX) Q1 Earnings Surpass Estimates, Revenues Down Y/Y
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IDEX Corporation’s (IEX - Free Report) first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. The bottom line decreased approximately 10.1% from the year-ago quarter’s figure of $2.09. However, it exceeded management’s projection of $1.70-$1.75 per share.
Revenue Details
In the quarter under review, IDEX’s net sales of $800.5 million underperformed the Zacks Consensus Estimate of $805 million. The top line also decreased 5.3% year over year. Organic sales in the quarter decreased 6% year over year. Acquisitions/divestitures boosted sales by 1%.
IEX reports net sales under three business segments, the results of which are discussed below:
Revenues from the Fluid & Metering Technologies segment totaled $313.7 million, decreasing 3% year over year. Our estimate for segmental revenues was $302.0 million. Organic sales were down 3%.
Revenues from the Health & Science Technologies segment totaled $310.1 million, indicating a year-over-year decline of 12%. Our estimate for segmental revenues was $321.0 million. Organic sales in the quarter declined 13% year over year while acquired assets boosted sales by 1%.
Revenues from the Fire & Safety/Diversified Products segment totaled $178.0 million, up 2% year over year. Our estimate for segmental revenues was $176.9 million. The results were aided by a 2% increase in organic sales.
IDEX Corporation Price, Consensus and EPS Surprise
In the quarter under review, IDEX’s cost of sales decreased 4.3% year over year to $443.1 million. The gross profit was $357.4 million, down 6.6% year over year. The gross margin was 45% compared with 45.2% in the year-ago quarter.
Selling, general and administrative expenses increased 2.9% year over year to $195.1 million. Adjusted EBITDA in the quarter under review decreased 9.4% year over year to $208.3 million. The adjusted EBITDA margin decreased 120 bps year over year to 26%.
The operating income was $161.2 million, down 16.2% year over year. The operating margin was 20.1%, down 260 bps year over year. Interest expenses in the quarter decreased 28.2% year over year to $9.4 million.
Balance Sheet and Cash Flow
While exiting the first quarter, IDEX’s cash and cash equivalents were $616.3 million compared with $534.3 million recorded at the end of fourth-quarter 2023. Long-term borrowings were $1.32 billion compared with $1.33 billion recorded at the end of fourth-quarter 2023.
In the first three months of 2024, IDEX generated net cash of $156.6 million from operating activities, increasing 5.9% from the year-ago period. Capital used for purchasing property, plant and equipment was $20 million compared with $26.6 million in the first three months of 2023. In the first three months, free cash flow was $136.6 million, up 12.6% year over year.
IEX paid out dividends totaling $48.5 million in the first three months of 2024, up 6.6% year over year.
Outlook
For second-quarter 2024, IDEX anticipates adjusted earnings to be $2.00-$2.05 per share.
On a GAAP basis, IEX predicts earnings to be $1.75-$1.80 per share and a 2-3% decline in organic sales from the respective year-ago readings.
For 2024, IDEX anticipates adjusted earnings to be $8.15-$8.45 per share. The figure represents an increase from earnings of $8.22 per share reported in 2023. On a GAAP basis, earnings are predicted to be $7.13-$7.43 per share.
Organic sales are predicted to decline 0-2% in 2024.
Zacks Rank & Stocks to Consider
IDEX currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector have been discussed below:
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ending June 2024) earnings has increased 0.7% in the past 60 days. The stock has risen 22.4% in the past six months.
Atmus Filtration Technologies Inc. (ATMU - Free Report) presently sports a Zacks Rank of 1 and has a trailing four-quarter average earnings surprise of 20.3%.
ATMU’s earnings estimates have increased 7.7% for 2024 in the past 60 days. Shares of Atmus Filtration have risen 55.5% in the past six months.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 19.7%.
The Zacks Consensus Estimate for CAT’s 2024 earnings has increased 0.5% in the past 60 days. Shares of Caterpillar have jumped 48.3% in the past six months.
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IDEX (IEX) Q1 Earnings Surpass Estimates, Revenues Down Y/Y
IDEX Corporation’s (IEX - Free Report) first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. The bottom line decreased approximately 10.1% from the year-ago quarter’s figure of $2.09. However, it exceeded management’s projection of $1.70-$1.75 per share.
Revenue Details
In the quarter under review, IDEX’s net sales of $800.5 million underperformed the Zacks Consensus Estimate of $805 million. The top line also decreased 5.3% year over year. Organic sales in the quarter decreased 6% year over year. Acquisitions/divestitures boosted sales by 1%.
IEX reports net sales under three business segments, the results of which are discussed below:
Revenues from the Fluid & Metering Technologies segment totaled $313.7 million, decreasing 3% year over year. Our estimate for segmental revenues was $302.0 million. Organic sales were down 3%.
Revenues from the Health & Science Technologies segment totaled $310.1 million, indicating a year-over-year decline of 12%. Our estimate for segmental revenues was $321.0 million. Organic sales in the quarter declined 13% year over year while acquired assets boosted sales by 1%.
Revenues from the Fire & Safety/Diversified Products segment totaled $178.0 million, up 2% year over year. Our estimate for segmental revenues was $176.9 million. The results were aided by a 2% increase in organic sales.
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 decreased 4.3% year over year to $443.1 million. The gross profit was $357.4 million, down 6.6% year over year. The gross margin was 45% compared with 45.2% in the year-ago quarter.
Selling, general and administrative expenses increased 2.9% year over year to $195.1 million. Adjusted EBITDA in the quarter under review decreased 9.4% year over year to $208.3 million. The adjusted EBITDA margin decreased 120 bps year over year to 26%.
The operating income was $161.2 million, down 16.2% year over year. The operating margin was 20.1%, down 260 bps year over year. Interest expenses in the quarter decreased 28.2% year over year to $9.4 million.
Balance Sheet and Cash Flow
While exiting the first quarter, IDEX’s cash and cash equivalents were $616.3 million compared with $534.3 million recorded at the end of fourth-quarter 2023. Long-term borrowings were $1.32 billion compared with $1.33 billion recorded at the end of fourth-quarter 2023.
In the first three months of 2024, IDEX generated net cash of $156.6 million from operating activities, increasing 5.9% from the year-ago period. Capital used for purchasing property, plant and equipment was $20 million compared with $26.6 million in the first three months of 2023. In the first three months, free cash flow was $136.6 million, up 12.6% year over year.
IEX paid out dividends totaling $48.5 million in the first three months of 2024, up 6.6% year over year.
Outlook
For second-quarter 2024, IDEX anticipates adjusted earnings to be $2.00-$2.05 per share.
On a GAAP basis, IEX predicts earnings to be $1.75-$1.80 per share and a 2-3% decline in organic sales from the respective year-ago readings.
For 2024, IDEX anticipates adjusted earnings to be $8.15-$8.45 per share. The figure represents an increase from earnings of $8.22 per share reported in 2023. On a GAAP basis, earnings are predicted to be $7.13-$7.43 per share.
Organic sales are predicted to decline 0-2% in 2024.
Zacks Rank & Stocks to Consider
IDEX currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector have been discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 10.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ending June 2024) earnings has increased 0.7% in the past 60 days. The stock has risen 22.4% in the past six months.
Atmus Filtration Technologies Inc. (ATMU - Free Report) presently sports a Zacks Rank of 1 and has a trailing four-quarter average earnings surprise of 20.3%.
ATMU’s earnings estimates have increased 7.7% for 2024 in the past 60 days. Shares of Atmus Filtration have risen 55.5% in the past six months.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 19.7%.
The Zacks Consensus Estimate for CAT’s 2024 earnings has increased 0.5% in the past 60 days. Shares of Caterpillar have jumped 48.3% in the past six months.