A month has gone by since the last earnings report for Idex (IEX Quick QuoteIEX - Free Report) . Shares have added about 5.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Idex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

IDEX Q3 Earnings Surpass Estimates, Sales Increase Year Over Year

IDEX’s 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 per share. However, it matched the upper band of the management’s projected range of $1.85-$1.90 per share.

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. 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. 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’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%.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, Idex has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Idex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Idex belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Crane (CR Quick QuoteCR - Free Report) , has gained 12.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Crane reported revenues of $597.2 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $1.38 for the same period compares with $1.03 a year ago.

For the current quarter, Crane is expected to post earnings of $1.24 per share, indicating a change of +37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Crane. Also, the stock has a VGM Score of D.