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Sep 30, 2021

IDEX Q3 2021 Earnings Report

IDEX reported record orders and sales, navigating supply chain challenges and achieving strong operating results.

Key Takeaways

IDEX Corporation announced record third-quarter results with significant increases in orders and sales. The company reported a 23% increase in sales and a 36% increase in orders compared to the prior year. Adjusted EPS reached a record $1.63, and the company narrowed its full-year adjusted EPS guidance to $6.30 to $6.33.

Record orders of $774.2 million, up 36% overall and 28% organically compared to Q3 2020.

Record sales of $712.0 million, up 23% overall and 15% organically compared to Q3 2020.

Reported operating margin was 22.6% with adjusted operating margin of 24.3%.

Record reported EPS was $1.51 with record adjusted EPS of $1.63.

Total Revenue
$712M
Previous year: $581M
+22.5%
EPS
$1.63
Previous year: $1.4
+16.4%
Gross Profit
$312M
Previous year: $252M
+23.9%
Cash and Equivalents
$806M
Previous year: $878M
-8.1%
Free Cash Flow
$142M
Previous year: $135M
+4.7%
Total Assets
$4.85B
Previous year: $4.23B
+14.9%

IDEX

IDEX

IDEX Revenue by Segment

Forward Guidance

The company expects organic sales growth of 9 to 10 percent with EPS in the range of $1.55 to $1.58 for the fourth quarter. For the full year, they are maintaining their projection of 11 to 12 percent organic sales growth and narrowing their adjusted EPS range to $6.30 to $6.33.

Positive Outlook

  • Expects organic sales growth of 9% to 10% for Q4.
  • Maintaining full-year organic sales growth projection of 11% to 12%.
  • Narrowing adjusted EPS range to $6.30 to $6.33 for the full year.
  • Acquisitions made in the first half of the year are performing extremely well.
  • Balance sheet remains strong, with ample capital to support organic investments in business innovations and strategic M&A.

Challenges Ahead

  • Assumes similar output to Q3 results.
  • Potential for year-end logistics challenges.
  • Step up in targeted investments.
  • Challenging supply chain environment.
  • Macro constraints that inhibit customer satisfaction.

Revenue & Expenses

Visualization of income flow from segment revenue to net income