Hot Stock That Must Be in Your Portfolio: IDEX Corporation (NYSE: IEX)

On Wednesday, Shares of IDEX Corporation (NYSE: IEX) showed the bullish trend with a higher momentum of 0.72% and ended its trading session at $142.05. The company traded total volume of 438,769 shares as contrast to its average volume of 272.36K shares. The company has a market value of $10.84B and about 76.28M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $89.69 and reached the max level of $148.32.

IDEX Corporation (IEX) recently declared its financial results for the three- and twelve- month periods ended December 31, 2017.

Full Year 2017:

Orders of $2.30B were up 9 percent contrast with the prior year (+7 percent organic and +2 percent acquisitions/divestitures).

Sales of $2.30B were up 8 percent contrast with the prior year (+6 percent organic and +2 percent acquisitions/divestitures).

Gross margin of 44.9 percent was up 90 basis points contrast with the prior year. Excluding $14.70M of pre-tax fair value inventory step-up charges from acquisitions in the prior year period, gross margin increased 20 basis points.

Operating income of $502.60M resulted in an operating margin of 22.0 percent. Excluding a $9.30M gain on divestiture and $8.50M of restructuring expenses, adjusted operating income was $501.70M with an adjusted operating margin of 21.9 percent, up 120 basis points from the prior year. Excluding the fair value step-up charges from acquisitions in the prior year period, adjusted operating margin was up 50 basis points. Adjusted operating income drove adjusted EBITDA of $583.60M which was 26 percent of sales and covered interest expense by 13 times.

Provision for income taxes of $118.00M resulted in an effective tax rate (ETR) of 25.9 percent and included the tax impact from the gain on divestiture and restructuring expenses. Excluding the tax impact from the gain on divestiture and restructuring expenses, provision for income taxes was $120.80M which resulted in an adjusted ETR of 26.6 percent.

Net income was $337.30M which resulted in EPS of $4.36. Excluding the gain on divestiture and restructuring expenses, adjusted EPS of $4.31 increased 56 cents, or 15 percent, from prior year adjusted EPS.

Cash from operations of $432.80M was up 8 percent from the prior year and led to free cash flow of $388.90M, which was up 8 percent from the prior year and 117 percent of adjusted net income.

Fourth Quarter 2017:

Orders of $603.00M were up 10 percent contrast with the prior year period (+9 percent organic, -1 percent acquisition/divestitures and +2 percent foreign currency translation).

Sales of $585.90M were up 10 percent contrast with the prior year period (+9 percent organic, -1 percent acquisition/divestitures and +2 percent foreign currency translation).

Gross margin of 44.5 percent was up 70 basis points contrast with the prior year period. Excluding the $4.40M pre-tax fair value inventory step-up charge from an acquisition in the prior year period, gross margin was down 20 basis points mainly because of additional engineering investments and operational challenges associated with the strong growth within HST.

Operating income of $135.20M resulted in an operating margin of 23.1 percent. Excluding a $9.30M gain on divestiture and $3.70M of restructuring expenses, adjusted operating income was $129.60M with an adjusted operating margin of 22.1 percent, up 150 basis points from the prior year. Excluding the fair value step-up charge from an acquisition in the prior year period, adjusted operating margin was up 60 basis points. Adjusted operating income drove adjusted EBITDA of $149.40M which was 25 percent of sales and covered interest expense by 14 times.

Provision for income taxes of $29.90M resulted in an ETR of 24.2 percent and included the tax impact from the gain on divestiture and restructuring expenses. Excluding the tax impact from the gain on divestiture and restructuring expenses, provision for income taxes was $31.10M which resulted in an adjusted ETR of 26.4 percent.

Net income was $93.70M which resulted in EPS of $1.21. Excluding the gain on divestiture and restructuring expenses, adjusted EPS of $1.12 increased 16 cents, or 17 percent, from the prior year period adjusted EPS.

Cash from operations of $136.20M was up 18 percent from the prior year period and led to free cash flow of $120.40M, which was up 14 percent from the prior year period and 139 percent of adjusted net income.

The Company offered net profit margin of 14.70% while its gross profit margin was 44.90%. ROE was recorded as 19.10% while beta factor was 1.24. The stock, as of recent close, has shown the weekly upbeat performance of 3.84% which was maintained at 7.64% in this year.

Leon Constant

Reporter

I am Leon Constant and I focus on breaking news stories and ensuring we (“The Stock Gem”) offer timely reporting on some of the most recent stories released through market wires about “Basic Material Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for thestockgem.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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