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Mar 31, 2023

IDEX Q1 2023 Earnings Report

IDEX delivered strong results, achieving record sales and EPS above guidance, while proactively executing cost reductions in response to a larger-than-anticipated inventory correction within Health & Science Technologies.

Key Takeaways

IDEX Corporation reported record sales of $845 million, a 13% increase overall and 6% organically. Reported EPS was $1.84, up 1%, and adjusted EPS was $2.09, up 7%. Strong operating cash flow of $148 million, up 86%, resulted in free cash flow of $121 million, up 91%. The company reached an agreement to purchase Iridian Spectral Technologies in April 2023.

Record sales of $845 million, up 13% overall and 6% organically.

Reported EPS of $1.84, up 1% and adjusted EPS of $2.09, up 7%.

Strong operating cash flow of $148 million, up 86%; free cash flow of $121 million, up 91%.

Agreement reached in April 2023 to purchase Iridian Spectral Technologies.

Total Revenue
$845M
Previous year: $751M
+12.6%
EPS
$2.09
Previous year: $1.96
+6.6%
Gross Profit
$383M
Previous year: $343M
+11.7%
Cash and Equivalents
$511M
Previous year: $733M
-30.3%
Free Cash Flow
$121M
Previous year: $63.6M
+90.7%
Total Assets
$5.66B
Previous year: $5B
+13.2%

IDEX

IDEX

IDEX Revenue by Segment

Forward Guidance

Full year 2023 organic sales growth is projected to be 0 to 3 percent over the prior year period, with GAAP EPS of $7.30 to $7.60 (adjusted EPS of $8.25 to $8.55). Second quarter 2023 organic sales growth is projected to be approximately 3 percent, with GAAP EPS of $1.86 to $1.89 (adjusted EPS of $2.10 to $2.13).

Positive Outlook

  • Full year 2023 organic sales growth is projected to be 0 to 3 percent over the prior year period.
  • Full year 2023 GAAP EPS of $7.30 to $7.60.
  • Full year 2023 adjusted EPS of $8.25 to $8.55.
  • Second quarter 2023 organic sales growth is projected to be approximately 3 percent.
  • Second quarter 2023 GAAP EPS of $1.86 to $1.89.

Challenges Ahead

  • Estimates exclude Iridian Spectral Technologies and all future acquisitions.
  • Revised 2023 revenue growth outlook for Health & Science Technologies is now negative.
  • Customers across Health & Science Technologies segment indicated a larger, more prolonged inventory correction than previously communicated.
  • Lowering full year 2023 adjusted EPS guidance to $8.25 to $8.55 per share.
  • Uncertainties in the financial markets and adverse developments affecting the financial services industry

Revenue & Expenses

Visualization of income flow from segment revenue to net income