IDEX Corporation Shows Mixed Results Amid Market Growth
Northbrook, Illinois-based IDEX Corporation (IEX) is an applied solutions company specializing in fluid and metering technologies, health and science technologies, and diverse safety products. With a market capitalization of $17.6 billion, IDEX operates across the Americas, Europe, and the Indo-Pacific regions.
Over the past year, IDEX has struggled to keep pace with the booming market. In 2024, IDEX’s stock prices have risen by only 6.9% year-to-date and 16.5% over the last year. In contrast, the S&P 500 Index ($SPX) has skyrocketed by 26.2% this year and 32.1% in the past 52 weeks.
When focusing specifically on its industrial sector, IDEX has also underperformed compared to the Industrial Select Sector SPDR Fund (XLI), which enjoyed a 26.1% increase in 2024 and 35.1% over the past year.
On October 29, following the announcement of its Q3 earnings, IEX stock surged 7.2%. The company exceeded analysts’ expectations with a strong performance, particularly in the Health & Science Technologies segment, where it noted a healthy rise in organic orders. IDEX also experienced growth in its Fluid & Metering Technologies and Fire & Safety/Diversified Products segments, leading to a total net sales figure of $798.2 million, surpassing analyst estimates by 92 basis points. Additionally, the adjusted EPS of $1.90 exceeded projections by 53 basis points, contributing to the stock’s upward momentum.
Despite this positive news, IDEX has reported a decline in profitability, with a year-over-year drop in adjusted net income of 10.3%, down to $144.1 million. This decrease reflects reduced profit margins across all segments.
Looking ahead to the current fiscal year ending in December, analysts anticipate a 4.1% decrease in adjusted EPS to $7.88. However, IDEX’s history of beating earnings expectations is notable, as it has surpassed forecasts in each of the past four quarters.
The consensus rating for IEX stock is currently a “Moderate Buy.” Among the 11 analysts covering the stock, six recommend a “Strong Buy,” one advises a “Moderate Buy,” and four suggest a “Hold” rating.
This evaluation has remained consistent over the last three months.
On October 31, RBC Capital analyst Deane Dray maintained an “Outperform” rating while adjusting the price target to $248, indicating a potential upside of 6.9% from current levels.
IEX’s mean price target sits at $233.20, suggesting a slight upside, while the highest target from analysts stands at $251, representing an 8.2% premium compared to current prices.
On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All information and data are intended for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
