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IDEX Q3 Earnings Surpass Estimates, Sales Increase Year Over Year

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IDEX Corporation’s (IEX - Free Report) third-quarter 2024 adjusted earnings of $1.90 per share surpassed the Zacks Consensus Estimate of $1.89. The bottom line decreased approximately 10.4% from the year-ago quarter’s earnings of $2.12. However, it matched the upper band of the management’s projected range of $1.85-$1.90 per share.

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IEX’s Revenue Details

IDEX’s net sales of $798.2 million beat the Zacks Consensus Estimate of $791 million.  The top line increased approximately 1% year over year. Organic sales were flat year over year. Acquisitions/divestitures had a positive impact on sales of 1%.

IEX reports net sales under three business segments, the results of which are discussed below:

Net sales from the Fluid & Metering Technologies segment totaled $300.8 million, flat year over year. Our estimate for segmental net sales was $294.6 million. Organic sales increased 2% year over year. Acquisition/divestitures impacted sales by 3%, while foreign currency translation had a positive impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $311.0 million, flat year over year. Our estimate for segmental net sales was $308.5 million. Organic sales declined 5% year over year.

Net sales from the Fire & Safety/Diversified Products segment totaled $188.0 million, which increased 4% year over year. Our estimate for segmental net sales was $186.5 million. Organic sales increased 4% on a year-over-year basis.

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation price-consensus-eps-surprise-chart | IDEX Corporation Quote

IDEX’s Margin Profile

IDEX’s cost of sales increased 0.1% year over year to $444.3 million. The gross profit was $353.9 million, up 1.2% year over year. The gross margin was 44.3% compared with 44.1% in the year-ago quarter.

Selling, general and administrative expenses increased 10.3% year over year to $182.9 million. Adjusted EBITDA decreased 5% year over year to $214.3 million. The adjusted EBITDA margin decreased 150 bps year over year to 26.9%.

The operating income was $168.0 million, down 6.5% year over year. The operating margin was 21%, down 160 bps year over year. Interest expenses (net) decreased 24.8% year over year to $10.3 million.

Balance Sheet and Cash Flow of IDEX

While exiting the third quarter, IDEX’s cash and cash equivalents were $633.2 million compared with $534.3 million at the end of fourth-quarter 2023. Long-term borrowings (net) were $2.1 billion compared with $1.33 billion at the end of fourth-quarter 2023.

In the first nine months of 2024, IDEX generated net cash of $495.5 million from operating activities, down 3.9% from the year-ago period. Capital expenditures were $49.6 million compared with $68.3 million in the first nine months of 2023. In the same period, free cash flow was $445.9 million, down 0.3% year over year.

IDEX paid out dividends totaling $153.0 million in the first nine months of 2024, up 7.5% year over year.

IDEX’s Outlook

For the fourth quarter, IDEX anticipates adjusted earnings to be in the band of $2.01-$2.06 per share.

On a GAAP basis, IEX predicts earnings to be in the range of $1.64-$1.69 per share and organic sales to increase in the range of 3-4% from the respective year-ago readings.

For 2024, IDEX anticipates adjusted earnings to be in the band of $7.85-$7.90 per share compared with the earlier projected range of $7.80-$7.90. The figure indicates a decrease from earnings of $8.22 per share reported in 2023. On a GAAP basis, earnings are predicted to be in the band of $6.65-$6.70 per share, down from the earlier guided range of $6.85-$6.95.

Organic sales are predicted to decline in the band of 1-2%.

IEX’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.

John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.

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