IDEX Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

IDEX (NYS: IEX) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IDEX met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew.

Gross margins increased, operating margins improved, net margins contracted.

Revenue details
IDEX reported revenue of $480.7 million. The nine analysts polled by S&P Capital IQ predicted sales of $479.3 million. Sales were 19% higher than the prior-year quarter's $405.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.65. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share on the same basis. GAAP EPS of $0.57 for Q4 were 14% higher than the prior-year quarter's $0.50 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.3%, 30 basis points better than the prior-year quarter. Operating margin was 17.8%, 40 basis points better than the prior-year quarter. Net margin was 9.9%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $489.9 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $1.99 billion. The average EPS estimate is $2.75.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 89 members out of 94 rating the stock outperform, and five members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give IDEX a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IDEX is outperform, with an average price target of $45.00.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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