What's in the Cards for IDEX (IEX) This Earnings Season?
IDEX Corporation IEX is scheduled to release first-quarter 2023 results on Apr 26 after market close.
The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by 0.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.7%.
let's see how things are shaping up for IDEX this earnings season.
Factors to Note
IDEX’s first-quarter 2023 performance is expected to have benefited from solid orders, backlog and accretive pricing actions. Strength in agriculture, water, energy, industrial and chemical end markets is likely to have aided its Fluid & Metering Technologies segment.
The Zacks Consensus Estimate for gross sales in the Fluid & Metering Technologies segment indicates a 9.2% rise from the year-ago reported quarter. For the first quarter, we expect the Fluid & Metering Technologies segment’s gross sales to increase 11% year over year.
Solid business in life science, artificial intelligence, auto, semiconductor, pharma and industrial markets is likely to have driven the Health & Science Technologies segment. The consensus mark for the first-quarter Health & Science Technologies segment’s gross sales suggests a 13% increase from the year-ago reported number. For the quarter, we expect the Health & Science Technologies segment’s gross sales to climb 9.9% year over year.
For the Fire, Safety & Diversified product segment, solid momentum in the fire and rescue, auto and aero end markets is expected to have been beneficial in the first quarter of 2023. The Zacks Consensus Estimate for the Fire, Safety & Diversified product segment’s gross sales indicates a 4.2% jump from the year-ago reported number. We expect the segment’s gross sales to increase 6.8% from the first quarter of 2022 reported number.
The company’s buyout of Muon Group (November 2022) and KZValve (May 2022) is likely to have boosted its top line in the first quarter. For the to-be-reported quarter, the company anticipates buyout synergies to boost sales by 9%.
However, supply-chain woes, unfavorable price/cost impacts and higher discretionary expenses are likely to have affected IEX’s performance in the to-be-reported quarter. Given the company’s substantial international presence, foreign-currency headwinds are likely to have weighed on the top line in the first quarter.
IDEX Corporation Price and EPS Surprise
IDEX Corporation price-eps-surprise | IDEX Corporation Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for IDEX 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: IEX has an Earnings ESP of -1.40% as the Most Accurate Estimate is pegged at $2, lower than the Zacks Consensus Estimate of $2.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: IEX presently carries a Zacks Rank of 3.
Highlights of Q4 Earnings
IDEX reported impressive fourth-quarter 2022 results. IDEX’s adjusted earnings were $2.01 per share, beating the Zacks Consensus Estimate of $1.98. On a year-over-year basis, the bottom line increased 29.7%. Healthy segmental results favorably impacted the quarter’s earnings. IDEX’s net sales were $810.7 million, reflecting year-over-year growth of 13.4%. Its top line surpassed the Zacks Consensus Estimate of $773 million.
Stocks to Consider
Here are some companies within the broader Industrial Products sector, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Caterpillar CAT, which has an Earnings ESP of +2.54% and a Zacks Rank of 3, is scheduled to release first-quarter 2023 earnings numbers on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9%.
A. O. Smith Corporation AOS has an Earnings ESP of +10.19% and a Zacks Rank of 3. The company is scheduled to release first-quarter 2023 results on Apr 27.
AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while matching in one, the average beat being 3.2%.
Illinois Tool Works ITW has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is slated to release first-quarter 2023 results on May 2.
Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 0.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
