We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IDEX (IEX) Beats on Q1 Earnings, Projects 2022 Growth Y/Y
Read MoreHide Full Article
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.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
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.