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The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 4.9%.
The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $769 million, suggesting a decline of 5.2% from the prior-year quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.78 per share, indicating an 11.4% decline from the year-ago quarter’s reported number.
Let's see how things are shaping up for IDEX this earnings season.
Factors to Note
Softness in the life sciences, analytical instrumentation, semiconductor, and industrial end markets is expected to have hurt the Health & Science Technologies (HST) segment in the fourth quarter. We expect the HST segment’s revenues to decrease 12.3% year over year to $309.8 million in the fourth quarter.
A slowdown in the industrial businesses and continued customer destocking in the agriculture business are expected to have affected the Fluid & Metering Technologies segment’s results in the fourth quarter. We anticipate the segment’s revenues to dip 2% on a year-over-year basis to $282.2 million in the to-be-reported quarter.
The increasing cost of sales due to escalating raw material costs, and rising selling, general and administrative expenses due to higher employee-related costs and discretionary spending are likely to have dented IEX’s bottom line in the to-be-reported quarter. We anticipate the segment’s adjusted earnings to decline 11.7% on a year-over-year basis to $1.77 per share in the to-be-reported quarter.
The company’s international presence exposes it to the risk of adverse currency fluctuations, which are likely to have hurt its performance in the to-be-reported quarter. Our estimate for the company’s revenues in the fourth quarter is pegged at $765.7 million, suggesting a 5.6% decrease from the year-ago reported figure.
However, strong momentum in the fire and rescue businesses is likely to have supported the Fire & Safety/Diversified Products in the fourth quarter. We expect the segment’s revenues to increase 2.5% to $175.2 million from the year-ago reported figure.
The STC Material Solutions acquisition, which expanded the company’s growing expertise in material sciences, is expected to have bolstered its top-line results in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for IEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: IDEX has an Earnings ESP of -0.75% as the Most Accurate Estimate is pegged at $1.77, which is lower than the Zacks Consensus Estimate of $1.78. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: IDEX presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
IDEX’s third-quarter 2023 adjusted earnings of $2.12 per share surpassed the Zacks Consensus Estimate of $1.89 per share. On a year-over-year basis, the bottom line decreased approximately 1% from the year-ago quarter’s figure of earnings of $2.02 per share. In the quarter under review, IDEX’s net sales of $793.4 million outperformed the consensus estimate of $790 million. However, the top line decreased 3.7% year over year.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +8.19% and a Zacks Rank of 3. The company is slated to release third-quarter fiscal 2024 (ended December 2023) results on Feb 8.
RBC Bearings’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 7.7%.
Image: Bigstock
Will Increasing Expenses Dent IDEX's (IEX) Q4 Earnings?
IDEX Corporation (IEX - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 6 after market close.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 4.9%.
The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $769 million, suggesting a decline of 5.2% from the prior-year quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.78 per share, indicating an 11.4% decline from the year-ago quarter’s reported number.
Let's see how things are shaping up for IDEX this earnings season.
Factors to Note
Softness in the life sciences, analytical instrumentation, semiconductor, and industrial end markets is expected to have hurt the Health & Science Technologies (HST) segment in the fourth quarter. We expect the HST segment’s revenues to decrease 12.3% year over year to $309.8 million in the fourth quarter.
A slowdown in the industrial businesses and continued customer destocking in the agriculture business are expected to have affected the Fluid & Metering Technologies segment’s results in the fourth quarter. We anticipate the segment’s revenues to dip 2% on a year-over-year basis to $282.2 million in the to-be-reported quarter.
The increasing cost of sales due to escalating raw material costs, and rising selling, general and administrative expenses due to higher employee-related costs and discretionary spending are likely to have dented IEX’s bottom line in the to-be-reported quarter. We anticipate the segment’s adjusted earnings to decline 11.7% on a year-over-year basis to $1.77 per share in the to-be-reported quarter.
The company’s international presence exposes it to the risk of adverse currency fluctuations, which are likely to have hurt its performance in the to-be-reported quarter. Our estimate for the company’s revenues in the fourth quarter is pegged at $765.7 million, suggesting a 5.6% decrease from the year-ago reported figure.
However, strong momentum in the fire and rescue businesses is likely to have supported the Fire & Safety/Diversified Products in the fourth quarter. We expect the segment’s revenues to increase 2.5% to $175.2 million from the year-ago reported figure.
The STC Material Solutions acquisition, which expanded the company’s growing expertise in material sciences, is expected to have bolstered its top-line results in the to-be-reported quarter.
IDEX Corporation Price and Consensus
IDEX Corporation price-consensus-chart | IDEX Corporation Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for IEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: IDEX has an Earnings ESP of -0.75% as the Most Accurate Estimate is pegged at $1.77, which is lower than the Zacks Consensus Estimate of $1.78. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: IDEX presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
IDEX’s third-quarter 2023 adjusted earnings of $2.12 per share surpassed the Zacks Consensus Estimate of $1.89 per share. On a year-over-year basis, the bottom line decreased approximately 1% from the year-ago quarter’s figure of earnings of $2.02 per share. In the quarter under review, IDEX’s net sales of $793.4 million outperformed the consensus estimate of $790 million. However, the top line decreased 3.7% year over year.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Alarm.com Holdings, Inc. (ALRM - Free Report) has an Earnings ESP of + 8.79% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +8.19% and a Zacks Rank of 3. The company is slated to release third-quarter fiscal 2024 (ended December 2023) results on Feb 8.
RBC Bearings’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 7.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.