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) Down 1.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Idex (IEX - Free Report) . Shares have lost about 1.9% in that time frame, outperforming 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 catalysts.
IDEX Q4 Earnings & Revenues Beat, Increase Y/Y
IDEX reported impressive fourth-quarter 2022 results. The company’s earnings surpassed the Zacks Consensus Estimate by 1.5%, whereas sales beat the same by 4.9%.
In the reported quarter, IDEX’s adjusted earnings were $2.01 pr share, beating the Zacks Consensus Estimate of $1.98. On a year-over-year basis, the bottom line increased 29.7% from the year-ago quarter’s $1.55. Healthy segmental results favorably impacted the quarter’s earnings.
Earnings for the fourth quarter exceeded management’s projection of $1.92-$1.97.
Revenue Details
In the quarter under review, IDEX’s net sales were $810.7 million, reflecting year-over-year growth of 13.4%. Organic sales in the quarter increased 12% year over year, higher than 9% growth expected by IEX. Acquired assets boosted sales 5%. Foreign currency translation left a negative impact of 4%.
IDEX’s top line surpassed the Zacks Consensus Estimate of $773 million.
IEX reports net sales under three business segments, the results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $287.8 million, increasing 12.2% year over year. Organic sales were up 9% and synergies from acquired assets added 8%. Foreign currency translation left a negative impact of 3%.
Revenues from Health & Science Technologies totaled $353 million, reflecting year-over-year growth of 20%. Organic sales in the quarter increased 19% year over year, while acquired assets boosted sales 5%. Foreign currency translation left a negative impact of 4%.
Revenues from Fire & Safety/Diversified Products totaled $170.9 million, rising 1.4% year over year. The results were aided by a 6% increase in organic sales but suffered 5% forex woes.
Margin Profile
In the quarter under review, IDEX’s cost of sales increased 16.1% year over year to $465.0 million. The adjusted gross profit was $353.8 million, up 12.6% year over year, while the adjusted gross margin was 43.6% compared with 44% reported in the year-ago quarter.
Selling, general and administrative expenses increased 10% year over year to $169 million. The same represented 20.8% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 13.9% year over year to $218.9 million. The adjusted EBITDA margin increased 10 bps year over year to 29%.
The adjusted operating income was $184.8 million, up 13.6% year over year, whereas the margin was 22.8%, flat year over year. Interest expenses in the quarter increased 26% year over year to $12.1 million.
Balance Sheet and Cash Flow
While exiting the fourth quarter, IDEX’s cash and cash equivalents decreased 49.7% to $430.2 million compared with $855.4 million recorded at the end of fourth-quarter 2021. Long-term borrowings were $1,468.7 million compared with $1,190.3 million recorded at the end of fourth-quarter 2021.
In the twelve months of 2022, IDEX generated net cash of $557.4 million from operating activities, decreasing 1.4% from the year-ago period. Capital used for purchasing property, plant and equipment was $68 million compared with $72.7 million in 2021. Free cash flow was $489.4 million, down 0.6% year over year.
IEX paid out dividends totaling $177.4 million and repurchased common stocks worth $148.1 million.
The amount spent on acquisitions, net of acquired cash, totaled $945.6 million.
Outlook
For first-quarter 2023, IDEX anticipates adjusted earnings of $1.98-$2.03 per share and 3-5% growth in organic sales from the respective year-ago readings.
IEX predicts EPS of $1.74-$1.79 per share for fourth-quarter 2022.
For 2023, IDEX anticipates adjusted earnings of $8.50-$8.80 per share. Full-year earnings are predicted to be $7.55-$7.85.
Organic sales are predicted to grow 1-5% for 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -6.7% due to these changes.
VGM Scores
Currently, Idex has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Idex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Idex (IEX) Down 1.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Idex (IEX - Free Report) . Shares have lost about 1.9% in that time frame, outperforming 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 catalysts.
IDEX Q4 Earnings & Revenues Beat, Increase Y/Y
IDEX reported impressive fourth-quarter 2022 results. The company’s earnings surpassed the Zacks Consensus Estimate by 1.5%, whereas sales beat the same by 4.9%.
In the reported quarter, IDEX’s adjusted earnings were $2.01 pr share, beating the Zacks Consensus Estimate of $1.98. On a year-over-year basis, the bottom line increased 29.7% from the year-ago quarter’s $1.55. Healthy segmental results favorably impacted the quarter’s earnings.
Earnings for the fourth quarter exceeded management’s projection of $1.92-$1.97.
Revenue Details
In the quarter under review, IDEX’s net sales were $810.7 million, reflecting year-over-year growth of 13.4%. Organic sales in the quarter increased 12% year over year, higher than 9% growth expected by IEX. Acquired assets boosted sales 5%. Foreign currency translation left a negative impact of 4%.
IDEX’s top line surpassed the Zacks Consensus Estimate of $773 million.
IEX reports net sales under three business segments, the results of which are discussed below:
Revenues from Fluid & Metering Technologies totaled $287.8 million, increasing 12.2% year over year. Organic sales were up 9% and synergies from acquired assets added 8%. Foreign currency translation left a negative impact of 3%.
Revenues from Health & Science Technologies totaled $353 million, reflecting year-over-year growth of 20%. Organic sales in the quarter increased 19% year over year, while acquired assets boosted sales 5%. Foreign currency translation left a negative impact of 4%.
Revenues from Fire & Safety/Diversified Products totaled $170.9 million, rising 1.4% year over year. The results were aided by a 6% increase in organic sales but suffered 5% forex woes.
Margin Profile
In the quarter under review, IDEX’s cost of sales increased 16.1% year over year to $465.0 million. The adjusted gross profit was $353.8 million, up 12.6% year over year, while the adjusted gross margin was 43.6% compared with 44% reported in the year-ago quarter.
Selling, general and administrative expenses increased 10% year over year to $169 million. The same represented 20.8% of revenues. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter under review increased 13.9% year over year to $218.9 million. The adjusted EBITDA margin increased 10 bps year over year to 29%.
The adjusted operating income was $184.8 million, up 13.6% year over year, whereas the margin was 22.8%, flat year over year. Interest expenses in the quarter increased 26% year over year to $12.1 million.
Balance Sheet and Cash Flow
While exiting the fourth quarter, IDEX’s cash and cash equivalents decreased 49.7% to $430.2 million compared with $855.4 million recorded at the end of fourth-quarter 2021. Long-term borrowings were $1,468.7 million compared with $1,190.3 million recorded at the end of fourth-quarter 2021.
In the twelve months of 2022, IDEX generated net cash of $557.4 million from operating activities, decreasing 1.4% from the year-ago period. Capital used for purchasing property, plant and equipment was $68 million compared with $72.7 million in 2021. Free cash flow was $489.4 million, down 0.6% year over year.
IEX paid out dividends totaling $177.4 million and repurchased common stocks worth $148.1 million.
The amount spent on acquisitions, net of acquired cash, totaled $945.6 million.
Outlook
For first-quarter 2023, IDEX anticipates adjusted earnings of $1.98-$2.03 per share and 3-5% growth in organic sales from the respective year-ago readings.
IEX predicts EPS of $1.74-$1.79 per share for fourth-quarter 2022.
For 2023, IDEX anticipates adjusted earnings of $8.50-$8.80 per share. Full-year earnings are predicted to be $7.55-$7.85.
Organic sales are predicted to grow 1-5% for 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -6.7% due to these changes.
VGM Scores
Currently, Idex has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Idex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.