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Jun 30, 2024

IDEX Q2 2024 Earnings Report

IDEX reported mixed results for Q2 2024, with sales declining but EPS exceeding expectations.

Key Takeaways

IDEX Corporation reported a 5% decrease in sales to $807 million, with a 4% organic decline. Reported diluted EPS increased by 2% to $1.86, while adjusted diluted EPS decreased by 6% to $2.06. The company's performance exceeded expectations despite macroeconomic headwinds, with margin expansion achieved through strong execution.

Sales decreased by 5% overall and 4% organically, totaling $807 million.

Reported diluted EPS increased by 2% to $1.86, while adjusted diluted EPS decreased by 6% to $2.06, exceeding expectations.

Operating cash flow decreased by 5% to $134 million, and free cash flow decreased by 2% to $118 million.

Full-year organic sales growth is now projected to decline by 1% to 2%, revised down from the previous guidance of 0% to 2% growth.

Total Revenue
$807M
Previous year: $846M
-4.6%
EPS
$2.06
Previous year: $2.18
-5.5%
Gross Profit
$367M
Previous year: $378M
-3.0%
Cash and Equivalents
$701M
Previous year: $457M
+53.3%
Free Cash Flow
$118M
Previous year: $120M
-1.6%
Total Assets
$5.9B
Previous year: $5.72B
+3.2%

IDEX

IDEX

IDEX Revenue by Segment

Forward Guidance

IDEX has revised its full-year and third-quarter 2024 outlook, projecting a decline in full-year organic sales growth and adjusted diluted EPS. Third quarter organic sales are projected to be 0% to 1% over the prior year period. Third quarter GAAP diluted EPS of $1.61 - $1.66 (adjusted diluted EPS of $1.85 - $1.90)

Positive Outlook

  • Third quarter organic sales are projected to be 0% to 1% over the prior year period

Challenges Ahead

  • Full year organic sales growth is projected to decline 1% to 2% versus the prior year, down from previous guidance of an increase of 0% to 2%
  • Full year GAAP diluted EPS of $6.85 - $6.95 (adjusted diluted EPS of $7.80 - $7.90), down from previous guidance of $7.13 - $7.43 (adjusted diluted EPS of $8.15 - $8.45)
  • Third quarter GAAP diluted EPS of $1.61 - $1.66 (adjusted diluted EPS of $1.85 - $1.90)

Revenue & Expenses

Visualization of income flow from segment revenue to net income