IDEX Corporation Faces Challenges Amidmarket Trends
Northbrook, Illinois-based IDEX Corporation (IEX) specializes in applied solutions across fluid and metering technologies, health and science technologies, and safety products. With a market capitalization of $14.9 billion, IDEX operates in the Americas, Europe, and the Indo-Pacific.
IDEX’s Stock Struggles Compared to the Market
Over the past year, IDEX has significantly lagged behind the broader market. IEX shares have dropped 17.1% in the last 52 weeks and 6.1% year-to-date, while the S&P 500 Index ($SPX) has surged by 17%. In addition, IDEX underperformed the Industrial Select Sector SPDR Fund’s (XLI) gains of 12.2% over the same period.
Recent Earnings Report Triggers Stock Decline
Following the release of its Q4 results on February 4, IDEX’s stock fell by 9.6%. Although the company reported a strong 9.4% year-over-year growth in net sales to $862.9 million, this figure did not meet analysts’ expectations. Positively, IDEX saw an 11.6% increase in adjusted net income to $155.1 million, with adjusted earnings per share (EPS) of $2.04 slightly exceeding expectations.
Future Projections Raise Concerns
IDEX, while optimistic about future growth, anticipates only a modest increase in organic sales of 1% to 3% for fiscal year 2025. Furthermore, the company projects a decline in organic revenues of 3% to 4% for the first quarter of 2025 compared to the same quarter last year, impacting investor confidence.
Analyst Ratings Show Mixed Sentiment
For the current fiscal year ending in December 2025, analysts forecasted a 4.7% increase in adjusted EPS to $8.26. Notably, IDEX has a solid track record of exceeding earnings expectations over the past four quarters. Among 11 analysts covering IEX stock, the consensus rating is a “Moderate Buy,” which consists of six “Strong Buy,” one “Moderate Buy,” and four “Hold” ratings.
Upcoming Price Targets for IDEX
On February 6, RBC Capital analyst Deane Dray reaffirmed an “Outperform” rating on IEX, with a price target set at $245. The average price target for IEX is $234.10, indicating a potential 19.2% increase, while the highest target of $267 suggests an upside of up to 35.9%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
