IDEX Corp. (IEX) Tops Q3 EPS by 10c, Revenues Beat; Boosts FY18 EPS Outlook

IDEX Corp. (NYSE: IEX) reported Q3 EPS of $1.41, $0.10 better than the analyst estimate of $1.31. Revenue for the quarter came in at $622.9 million versus the consensus estimate of $613.92 million.

• Orders were up 7 percent overall and 8 percent organically
• Sales were up 8 percent overall and 9 percent organically
• Reported operating margin was 23.3 percent with adjusted operating margin of 24.0 percent, up 200 bps
• Reported EPS was $1.37 with adjusted EPS of $1.41, up 31 percent

We remain committed to fund our most encouraging organic opportunities across the Company, which was evidenced by record capital expenditures in the third quarter. This focus on organic growth has now led to nine consecutive quarters of organic order expansion and seven consecutive quarters of organic sales growth. M&A continues to be a top priority for the Company and the acquisition funnel is healthy. With gross debt-to-EBITDA of 1.3 times, our balance sheet stands ready and is able to support our disciplined capital deployment strategy. In the quarter, we distributed $33 million in dividends to shareholders and repurchased 210 thousand shares of common stock for approximately $31 million.

Based on our strong third quarter operating results, we are raising our full year organic revenue growth expectations to approximately 8 percent, with approximately 5 to 6 percent expected in the fourth quarter. We are also increasing full year EPS guidance to $5.35 to $5.37, with fourth quarter EPS of $1.25 to $1.27. Our EPS guidance assumes a higher than expected fourth quarter tax rate of 26 percent due to potential changes in certain assumptions associated with the 2017 tax reform.”

GUIDANCE:

IDEX Corp. sees FY2018 EPS of $5.35-$5.37, versus the consensus of $5.33.

For earnings history and earnings-related data on IDEX Corp. (IEX) click here.

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