IDEX Earnings: What To Look For From IEX

Manufacturing company IDEX (NYSE:IEX) will be reporting results this Wednesday morning. Here’s what to look for.

IDEX beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $814.3 million, up 1.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

Is IDEX a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting IDEX’s revenue to grow 6.2% year on year to $857.5 million, a reversal from the 4.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IDEX has missed Wall Street’s revenue estimates five times over the last two years.

Looking at IDEX’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 2.5%, and Graco reported revenues up 3.4%, falling short of estimates by 3.1%. Gorman-Rupp traded up 9.9% following the results while Graco was down 2.7%.

Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 6.5% on average over the last month. IDEX is up 5% during the same time and is heading into earnings with an average analyst price target of $210.85 (compared to the current share price of $184.43).

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