Yahoo Finance IDEX Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
IDEX Corporation (NYSE:IEX) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to US$221 in the week after its latest first-quarter results. The result was positive overall - although revenues of US$801m were in line with what the analysts predicted, IDEX surprised by delivering a statutory profit of US$1.60 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for IDEX
Following the latest results, IDEX's 13 analysts are now forecasting revenues of US$3.33b in 2024. This would be a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 4.8% to US$7.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.34b and earnings per share (EPS) of US$7.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$241, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values IDEX at US$285 per share, while the most bearish prices it at US$210. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that IDEX's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.5% annually. Factoring in the forecast slowdown in growth, it looks like IDEX is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 view our analysis of IDEX's balance sheet, and whether we think IDEX is carrying too much debt, 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.
