IDEX Reports Q4 Earnings Below Analyst Estimates

Highlights:

* Revenue: $862.9 million (9.4% YoY growth)
* Non-GAAP EPS: $2.04 (0.5% beat)
* Adjusted EBITDA: $227.5 million (4.1% miss)
* Adjusted EPS guidance for FY2025: $8.27 (2.4% miss)

Overview:

IDEX (NYSE: IEX) missed Wall Street revenue estimates for Q4 CY2024 but posted a 9.4% YoY sales increase to $862.9 million. Non-GAAP EPS of $2.04 exceeded analyst consensus by 0.5%, while organic revenue rose 3% YoY.

Growth:

Over the past five years, IDEX has delivered modest annualized revenue growth of 5.6%, below the industrials sector average. Organic revenue has declined by an average of 1.2% YoY over the past two years.

Profitability:

IDEX boasts an impressive operating margin of 22.4% over the last five years. However, in Q4, its operating margin decreased to 19.2%, down from 20.3% in the same quarter last year.

Earnings:

IDEX's annual EPS growth of 6.3% over the past five years aligns with its revenue performance. In Q4, it reported EPS of $2.04, slightly above analyst estimates.

Guidance:

IDEX's adjusted EPS guidance for FY2025 of $8.27 falls short of analyst estimates by 2.4%.

Outlook:

Despite a solid finish in Q4, IDEX faces challenges in the form of missed EPS guidance, lower EBITDA, and declining organic revenue. The stock remained flat following the results announcement.

Investment:

Investors should thoroughly evaluate IDEX's business quality and valuation before making investment decisions. A detailed research report is available for further analysis.