Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

IDEX (IEX) Q1 Earnings Top Estimates, Revenues Increase

By Zacks Investment ResearchStock MarketsApr 29, 2019 06:54AM ET
www.investing.com/analysis/idex-iex-q1-earnings-top-estimates-revenues-increase-200412168
IDEX (IEX) Q1 Earnings Top Estimates, Revenues Increase
By Zacks Investment Research   |  Apr 29, 2019 06:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

IDEX Corporation (NYSE:IEX) reported better-than-expected results for the first quarter of 2019. It pulled off a positive earnings surprise of 5.11%.

The company’s adjusted earnings per share were $1.44, surpassing the Zacks Consensus Estimate of $1.37.

Further, the bottom line increased 12% from the year-ago quarter figure of $1.29. The improvement was driven by healthy organic growth and diligent execution of productivity initiatives.

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation Price, Consensus and EPS Surprise | IDEX Corporation Quote

IDEX generated revenues of $622.2 million in the quarter under review, reflecting year-over-year growth of 2%. The top-line improvement came on the back of 4% growth in organic sales, partially offset by 2% adverse impact of forex woes.

However, the top line lagged the consensus estimate of $635 million by 2%.

In the first quarter, orders increased 4% year over year to $655.5 million. As noted, organically orders improved 6%, acquisitions had positive impact of 1% and foreign currency movements had an adverse 3% impact.

IDEX reports revenues under the segments discussed below:

Net sales of Fluid & Metering Technologies (“FMT”) were $242.5 million, up 4% year over year. Organic net sales grew 6% while forex headwinds had 2% impact.

Revenues from Health & Science Technologies (“HST”) totaled $225.3 million, reflecting year-over-year growth of 2%. Results were driven by 3% organic sales growth and 1% gain from acquisitions, partially offset by forex woes of 2%.

Fire & Safety/Diversified Products (“FSDP”) revenues were $156.2 million, down 2% from the year-ago quarter. Organic sales improved 1% while currency translation had adverse 3% impact.

Margin Details

In the reported quarter, IDEX’s cost of sales increased 0.8% year over year to $338.4 million. It represented 55.4% of the quarter’s revenues compared with 54.8% in the year-ago quarter. Gross margin improved 40 basis points (bps) to 45.6% on the back of benefits from higher volumes, pricing and productivity actions. However, rise in engineering costs played spoilsport. Selling, general and administrative expenses decreased marginally to $136.5 million. It represented 21.9% of revenues compared with 22.5% a year ago.

Adjusted operating income increased 8.1% to $147.8 million, and margin improved 120 bps to 23.8%. On a segmental basis, adjusted operating income for the FMT segment increased 8.4% to $71.9 million and that for HST expanded 2.5% to $54.2 million while for FSDP it increased 1.5% to $40.3 million. Adjusted effective tax rate in the reported quarter was 19.5%.

Balance Sheet and Cash Flow

Exiting the first quarter, IDEX had cash and cash equivalents of $456.1 million, down 2.3% from $466.4 million recorded at the end of the last reported quarter. Long-term borrowings were flat sequentially at $848.4 million.

In the first quarter, the company generated net cash of $88.7 million from operating activities, reflecting growth of 23.7% from the year-ago quarter. Free cash flow was $75.8 million, up 23%.

Outlook

For 2019, adjusted earnings are anticipated to be $5.70-$5.85, higher than $5.60-$5.80 per share guided earlier. Organic revenue growth is estimated to be roughly 4-5%.

For the second quarter, earnings per share are expected to be $1.47-$1.50.

Zacks Rank & Key Picks

IDEX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same space are DXP Enterprises, Inc. (NASDAQ:DXPE) , Actuant Corporation (NYSE:ATU) and Cintas Corporation (NASDAQ:CTAS) . While DXP Enterprises sports a Zacks Rank #1 (Strong Buy), Actuant and Cintas carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises delivered average earnings surprise of 46.55% in the trailing four quarters.

Actuant pulled off average positive earnings surprise of 11.01% in the trailing four quarters.

Cintas outpaced estimates in the last reported quarter by 6.09%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



Cintas Corporation (CTAS): Free Stock Analysis Report

Actuant Corporation (ATU): Free Stock Analysis Report

DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report

IDEX Corporation (IEX): Free Stock Analysis Report

Original post

Zacks Investment Research
IDEX (IEX) Q1 Earnings Top Estimates, Revenues Increase
 

Related Articles

IDEX (IEX) Q1 Earnings Top Estimates, Revenues Increase

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email