Manufacturing company IDEX (NYSE: IEX) will be reporting earnings this Wednesday morning. Here’s what you need to know.
IDEX beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $865.4 million, up 7.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is IDEX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting IDEX’s revenue to grow 7.9% year on year to $861.1 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.93 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IDEX has missed Wall Street’s revenue estimates four times over the last two years.
Looking at IDEX’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 2.8%, missing analysts’ expectations by 1%, and Graco reported revenues up 4.7%, falling short of estimates by 3%. Gorman-Rupp traded down 5.6% following the results while Graco’s stock price was unchanged.
Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.8% on average over the last month. IDEX is up 3.3% during the same time and is heading into earnings with an average analyst price target of $193.74 (compared to the current share price of $167.60).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
