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Jun 30, 2020

IDEX Q2 2020 Earnings Report

IDEX's second quarter earnings declined due to the impact of the global health pandemic, but the company showed resilience with strong operating performance and new product development.

Key Takeaways

IDEX Corporation reported a decrease in sales and earnings for the second quarter of 2020, impacted by the global health pandemic. However, the company demonstrated resilience with strong operating performance and the development of new products to support the fight against COVID-19. The company achieved record quarterly free cash flow and ended the quarter with a strong cash position.

Second quarter orders were down 17 percent compared to the prior year period.

Sales were down 13 percent compared to the prior year period.

Adjusted operating margin was 21.1 percent.

The company expects third quarter organic sales to be down approximately 12 to 17 percent versus prior year.

Total Revenue
$561M
Previous year: $642M
-12.6%
EPS
$1.1
Previous year: $1.5
-26.7%
Gross Profit
$235M
Previous year: $292M
-19.7%
Cash and Equivalents
$746M
Previous year: $543M
+37.4%
Free Cash Flow
$161M
Previous year: $118M
+36.2%
Total Assets
$4.07B
Previous year: $3.64B
+11.9%

IDEX

IDEX

IDEX Revenue by Segment

Forward Guidance

The company anticipates that organic sales will be down approximately 12 to 17 percent in the third quarter of 2020.

Challenges Ahead

  • Uncertainty regarding the future path of the economy due to the evolving global pandemic.
  • Organic sales are expected to decline in the third quarter.
  • The global health pandemic continued to impact commercial performance.
  • Recent acquisitions negatively impacted adjusted gross margin and adjusted operating margin.
  • The company believes it hit the bottom in the second quarter, but faces much uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income