IDEX Corp (IEX) Reports Q3 2023 Earnings and Raises Full Year Guidance
Q3 2023 sales of $793.4 million, down 4% overall and 6% organically
Reported diluted EPS of $2.75, up 17%, and adjusted diluted EPS of $2.12, down 1%
Operating cash flow of $227 million, up 14%; record free cash flow of $207 million, up 14%
Full year GAAP EPS guidance raised to $7.91 to $7.96 from prior guidance of $6.80 to $6.90
On October 26, 2023, IDEX Corp (NYSE:IEX) released its financial results for the third quarter of 2023. Despite a decrease in sales, the company reported a rise in diluted EPS and strong operating cash flow. The company also raised its full year GAAP EPS guidance.
Financial Highlights
IDEX Corp (NYSE:IEX) reported Q3 2023 sales of $793.4 million, a decrease of 4% overall and 6% organically compared to the same period in 2022. The reported diluted EPS was $2.75, up 17%, and the adjusted diluted EPS was $2.12, down 1%. The company also reported a strong operating cash flow of $227 million, up 14%, and a record free cash flow of $207 million, up 14%.
The company's net income attributable to IDEX increased $30.4 million to $209.1 million, resulting in diluted EPS attributable to IDEX of $2.75 per share, an increase of $0.39 per share, or 17%, from the prior year period. The net income margin of 26.3% increased 460 basis points compared with the prior year period.
Company Performance and Future Outlook
Despite the decrease in sales, IDEX Corp (NYSE:IEX) demonstrated strong profitability and achieved record free cash flow in the third quarter. The company's CEO and President, Eric D. Ashleman, stated,
IDEX delivered strong profitability and achieved record free cash flow in the third quarter. Our teams continue to execute for customers and shareholders in a dynamic environment of transition and recalibration."
Looking ahead, the company raised its full year GAAP EPS guidance to $7.91 to $7.96 from the prior guidance of $6.80 to $6.90. The full year adjusted EPS guidance was also raised to $8.13 to $8.18 from the prior guidance of $7.90 to $8.00.
Segment Highlights
In the Fluid & Metering Technologies (FMT) segment, Q3 2023 net sales decreased by 2% compared to the third quarter of 2022. The Health & Science Technologies (HST) segment saw a 9% decrease in net sales compared to the same period in 2022. The Fire & Safety/Diversified Products (FSDP) segment reported a 5% increase in net sales compared to the third quarter of 2022.
In conclusion, despite a decrease in sales, IDEX Corp (NYSE:IEX) demonstrated strong profitability and cash flow in the third quarter of 2023. The company remains dedicated to its long-term focus and continues to aggressively deploy capital to support organic growth and M&A.
Explore the complete 8-K earnings release (here) from IDEX Corp for further details.
This article first appeared on GuruFocus.
