IDEX Shares Popped, Then Dropped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial-equipment maker IDEX (NYS: IEX) rose by as much as 10% on higher than average volume after reporting strong Q3 results. Unfortunately, the glow didn't last. Weak fourth-quarter earnings guidance took the stock all the way back into negative territory and is down more than 3% as of this writing.
So what: Third-quarter revenue rose 28% to $477 million while adjusted earnings rose 42% to $0.71 a share. Analysts were expecting $468 million and $0.62, respectively, according to data compiled by Yahoo! Finance.
Now what: All the goodwill from that beat disappeared once management released guidance during a call with analysts. Executives said to expect $0.60 to $0.63 a share in Q4 profit, short of the $0.65 Wall Street projected. Does it matter? Would you buy shares of IDEX at current prices? Please weigh in using the comments box below.
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