IDEX Corporation (NYSE:IEX) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that IDEX Corporation (NYSE:IEX) filed its quarterly result this time last week. The early response was not positive, with shares down 3.3% to US$196 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at US$807m, statutory earnings were in line with expectations, at US$1.86 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for IDEX

Following the latest results, IDEX's 13 analysts are now forecasting revenues of US$3.31b in 2024. This would be a satisfactory 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 5.4% to US$7.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.32b and earnings per share (EPS) of US$7.25 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$233, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values IDEX at US$277 per share, while the most bearish prices it at US$210. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting IDEX is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.9% growth on an annualised basis. That is in line with its 7.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So although IDEX is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on IDEX. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple IDEX analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether IDEX is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com